UK government publishes £298bn Defence Investment Plan with £4.7bn funding gap left for next prime minister to resolve
Prime Minister Keir Starmer unveiled the long-delayed Defence Investment Plan (DIP) on Tuesday, committing £298bn to defence over four years, representing a £15bn increase above the previous spending review settlement. The plan raises defence spending to 2.7% of GDP by 2030, short of NATO's 3.5% core defence target by 2035. Defence Secretary Dan Jarvis secured an additional £1.5bn beyond the offer that prompted his predecessor John Healey's resignation. However, Chancellor Rachel Reeves confirmed in a written statement that only £10.3bn of the £15bn increase has been identified, leaving a £4.7bn gap to be resolved at the autumn 2026 Budget. Sources indicate Andy Burnham, Starmer's expected successor, was not fully informed of this funding shortfall. The plan funds increases partly through a 1% cut to Whitehall capital budgets and scraps six existing military programmes including the Storm Shadow missile.
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