The Defence Investment Plan (DIP), published following the Strategic Defence Review (SDR) of 2 June 2025, is the Government’s first detailed defence investment strategy since the Ministry of Defence’s 2023 Equipment Plan. The UK Government has announced £298bn of defence spending over the four years from 2026 to 2030. The DIP, and its related documents, set out and demonstrated how the Government intends to fund and spend this money.
The publication comes after a three-year gap in detailed investment planning. Since the 2023 Equipment Plan, the Ministry of Defence has operated without an updated long-term investment strategy, while the National Audit Office identified a £16.9bn affordability gap between the Department’s equipment ambitions and available funding. The Defence Investment Plan is intended to address this by providing Parliament, industry and the public with greater transparency over defence spending, introducing annual reporting on delivery, and setting out how increased resources will be allocated across capability areas.
The Plan includes £15bn of additional funding to that announced in the 2025 Spending Review. It increases the Ministry of Defence’s annual budget from £68.3bn in 2026–27 to £73.8bn in 2027–28, £76.5bn in 2028–29 and £79.1bn in 2029–30. The Government states that this will increase UK defence spending to 2.7 per cent of GDP by 2029, while maintaining its ambition to reach 3 per cent during the next Parliament and 3.5 per cent by 2035.
The Defence Investment Plan commits the Ministry of Defence to publishing annual delivery updates to Parliament, with the first due before the 2027 summer recess, providing greater transparency over progress against its investment priorities.
Alongside this, the Plan reinforces the Government’s One Defence approach, recognising that national defence capability extends beyond the Armed Forces alone. It proposes a more integrated workforce model that brings together Regular personnel, Reservists, civil servants, industry specialists and veterans to deliver military capability, while strengthening the relationship between Defence and the UK industrial base. Reflecting lessons from the war in Ukraine, the Plan emphasises that military readiness depends not only on the Armed Forces, but also on resilient supply chains, innovation, manufacturing capacity and the skilled workforce that supports them.
The documents published as part of the Defence Investment Plan include:
This explainer summarises the principal spending commitments, capability investments and future strategies within the Defence Investment Plan.
Capability Investments
Royal Navy
The Defence Investment Plan reshapes the Royal Navy around a Hybrid Navy concept, combining traditional crewed warships with autonomous surface and underwater systems. This moves away from a force structure centred on a small number of large platforms towards a stated more affordable and distributed fleet. The announcements include;
- £1.5bn for the Hybrid Navy, including:
- At least £1.3bn for autonomous maritime capabilities, including:
- Type 91 uncrewed missile platforms
- Type 92 uncrewed underwater sensing platforms
- Type 93 extra-large uncrewed underwater vehicles (XLUUVs)
- Type 94 uncrewed radar platforms
- Future Common Combat Vessels (CCVs)
- Almost £250m for the Hybrid Navy Carrier Air Wing through Project PANTHEON and Project VANQUISH.
- At least £1.3bn for autonomous maritime capabilities, including:
- £1.1bn for the next phase of the Anglo-French autonomous Mine Hunting Capability programme.
- £330m to protect critical underwater infrastructure.
- £230m for autonomous seabed warfare systems.
- Continued investment in Integrated Air and Missile Defence through upgraded Type 45 destroyers.
- The Hybrid Navy replaces the planned Type 83 destroyer and Type 32 frigate concepts.
- The Multi-Role Strike Ship (MRSS) programme will instead align with the Netherlands-led Amphibious Transport Ship programme.
- Older Type 23 frigates will be retired by 2033 while at least seven new vessels enter service.
British Army
The Army receives significant investment to improve lethality, reconnaissance and autonomous capabilities, with a focus on rapidly fielding low-cost systems that can be deployed at scale. The announcements include;
- More than £20bn for Army lethality transformation.
- £400m for the Land Lethality Pipeline, including a £50m boost to the RAPSTONE rapid lethality programme.
- £310m for Project CORVUS, replacing Watchkeeper with next-generation reconnaissance drones.
- £210m for long-range one-way attack drones and loitering munitions.
- £150m to develop and manufacture uncrewed ground vehicles (UGVs).
- Investment in the British Army Training Unit Suffield (Canada) to expand testing of autonomous systems across 2,700km².
Royal Air Force and Drone Capabilities
The Defence Investment Plan envisages a Next Generation Royal Air Force, integrating autonomous aircraft alongside existing combat platforms. Alongside investment in next-generation fighters, the RAF will expand its use of drones, collaborative combat aircraft and integrated command-and-control systems. The announcements include;
- More than £5bn for autonomous and uncrewed systems.
- £8.6bn for the Global Combat Air Programme (GCAP).
- More than £1.1bn to sustain Typhoon into the 2040s.
- £1.6bn for drones and Project ASGARD.
- £790m for Integrated Air and Missile Defence.
- £300m to launch a UK Collaborative Combat Aircraft programme, with a demonstrator expected by 2030.
- £310m for the new Uncrewed Systems Centre, including DroneTEX.
- £220m for Project NYX to deliver up to 24 armed autonomous drones by 2030.
- £50m for Air Launched Effects, including swarming drone payloads.
- Establish:
- a Defence Uncrewed Systems Centre;
- an Uncrewed Systems Taskforce; and
- an Integrated Air, Space and Missile Defence Operations Centre.
- £11.1bn invested across Defence in weapons and munitions.
- Continued investment in AI-enabled command and control through the UK Air Battle Management System and the NEXUS cloud-based decision-support platform.
Space, Cyber and Artificial Intelligence
The Defence Investment Plan places digital capability alongside conventional military power, expanding investment in space, cyber operations and artificial intelligence. The Government aims to create an integrated digital force capable of operating across every domain, while strengthening governance around the use of AI. The announcements include;
- £3.2bn for space capabilities.
- Establish a Space Systems Group within UK Space Command.
- £7.5bn for the Digital Backbone and Targeting Web.
- Including £420m for the Digital Backbone to improve Defence-wide connectivity and data infrastructure.
- £2.5bn for cyber and electromagnetic capabilities.
- £1.8bn for the Digital Targeting Web.
- £200m for Taskforce RAID and Project FRONTIER.
- Create a Digital Warfighter capability.
- Expand the Defence Cyber and Electromagnetic Force, now comprising more than 500 personnel.
- Publish a new Defence Strategic Approach to AI.
- Introduce policy frameworks on Dependable AI and the Responsible Use of AI.
- Expand the Defence AI Centre.
- Create an AI Expert Advisory Group.
Intelligence and Special Forces
The DIP strengthens Defence Intelligence through institutional reform and additional investment in cyber and digital capabilities. While much of the funding remains classified, the Government has committed too;
- Establishing the Military Intelligence Service (MIS).
- Invest in upgraded intelligence infrastructure, including at RAF Wyton.
- Expand cyber intelligence capabilities.
- Invest in the Defence digital backbone to improve intelligence integration.
- Implement the Defence Intelligence Charter.
- Increase funding for UK Special Forces by 12% over the next four years.
People, Morale and Recruitment
The Defence Investment Plan continues this Government’s emphasis on recruitment, retention and service life. Alongside investment in accommodation and pay, the Government expands support for veterans and adopts a broader One Defence workforce model that integrates Regulars, Reservists, civil servants, industry specialists and veterans. The announcements include;
- £9bn over ten years for the Defence Housing Strategy.
- Create a new Defence Housing Service.
- Introduce new military housing standards.
- Accelerate delivery of housing on surplus defence land.
- Continue above-inflation military pay rises.
- £70m for veterans’ support.
- Deliver the VALOUR veterans programme and expand veterans’ hubs.
Education and Skills
To support increased defence investment, the Government is expanding the UK’s defence skills base, with a particular focus on engineering, advanced manufacturing and the nuclear enterprise. These measures aim to address workforce shortages while strengthening the domestic industrial base. The announcements include;
- £250m over five years for Defence Growth Deals.
- £182m skills package over five years.
- Establish five new Defence Technical Excellence Colleges in Plymouth, Yeovil, Lincoln, Blackpool and Rotherham.
- £290m investment in defence nuclear skills.
Defence Nuclear Enterprise
The Defence Nuclear Enterprise (DNE) remains the largest single area of investment within the Defence Investment Plan. The Government reaffirms its commitment to the nuclear “triple lock” including building four Dreadnought submarines, maintaining the Continuous at Sea Deterrent (CASD) and delivering future warhead upgrades. The announcements include;
- More than £20bn of additional investment compared with the previous four years.
- £47bn for submarines.
- £13bn for the nuclear warhead programme.
- £1.7bn for the Nuclear Fuels Programme.
- Continue construction of the four Dreadnought-class ballistic missile submarines.
- Build up to 12 SSN-AUKUS nuclear-powered attack submarines, with steel cut on the first boat next year.
- Complete construction of the final Astute-class submarine.
- Begin defining requirements for the post-Dreadnought strategic deterrent.
- Continue investment at AWE Aldermaston, Burghfield and RNAD Coulport, including completion of the MENSA facility and construction of the Future Materials Campus.
- Modernise submarine production facilities and expand reactor manufacturing capacity at Raynesway.
- Deliver major infrastructure upgrades at HMNB Clyde and Devonport, including three new floating docks.
- Invest £290m in defence nuclear skills.
Britian Focused Procurement
The Government intends to strengthen the UK’s defence industrial base by placing greater emphasis on domestic suppliers and sovereign capability. Procurement reforms are designed to support UK industry, increase SME participation and ensure defence investment generates wider economic benefits. The announcements include;
- Introduce a “buy British by default” approach in priority sectors.
- Publish a formal definition of a British company for defence procurement.
- Introduce a new defence offsets regime (subject to consultation).
- Weight procurement decisions towards companies with a substantive UK presence.
- Increase MOD spending with SMEs by 50% by 2028.
International policy
The Defence Investment Plan reinforces the UK’s commitment to NATO and key international partnerships, using defence investment to strengthen alliances, support defence exports and enhance collective capability. It also builds on the Government’s decision to transfer responsibility for Defence and Security Exports from the Department for Business and Trade to the Ministry of Defence, where it has been integrated with international collaboration and export functions to form National Armaments International. The announcements include;
- Join NATO’s Dual Capable Aircraft nuclear mission.
- Continue £3bn per year in military support for Ukraine.
- Deepen capability cooperation through NATO, AUKUS, GCAP and bilateral partnerships.
- Develop a combined amphibious capability with the Netherlands.
- Expand the Northern Navies initiative across Joint Expeditionary Force members.
- Deliver the Lunna House partnership with Norway, including a combined fleet of 13 anti-submarine frigates.
- Support Türkiye’s acquisition of Typhoon aircraft under an £8bn export agreement.
- Expand cooperation with Germany on long-range precision strike and artillery under the Trinity House agreement.
- Maintain overseas bases and reinforce support to the Overseas Territories, including replacing HMS Protector.
- Expand the global network of Defence Attachés and military staff to support defence diplomacy and exports.
Fiscal Responsibility
The Defence Investment Plan introduces a series of financial and governance reforms intended to improve affordability, strengthen oversight and provide greater certainty over long-term defence investment. Alongside new reporting requirements, the Government aims to make procurement more financially disciplined while creating new institutions to attract private capital and support multinational acquisition programmes. The announcements include;
- Leave funding beyond 2030 partly unallocated to retain flexibility for emerging technologies and future capability requirements.
- Introduce a new affordability gate, requiring major capability programmes to demonstrate they are affordable and deliverable before entering procurement.
- Publish annual Defence Investment Plan delivery updates to Parliament, beginning in 2027.
- Increase central departmental contingency funding from 1.2% of the MOD budget in 2026–27, to 2% by 2030, and at least 5% by 2035.
- £1.6bn for UK Defence Innovation to accelerate the development and adoption of new technologies.
- £500m MOD Modernisation Fund to finance efficiency measures, including system modernisation, workforce restructuring and contract reform.
- Publish a new Defence Finance and Investment Strategy (DFIS).
- Establish a Defence Investment Unit within the National Armaments Director (NAD) Group as the MOD’s centre of expertise for finance and investment.
- Publish a Defence Investment Roadmap setting out long-term investment priorities.
- Expand public-private investment into defence through new financing mechanisms.
- Establish a Defence Investors’ Advisory Group to strengthen engagement with institutional investors.
- Work with HM Treasury, Finland, the Netherlands and other NATO allies to establish a Multilateral Defence Mechanism, an international financial institution designed to:
- finance joint defence procurement;
- support multinational stockpiling of equipment and munitions; and
- provide supply chain finance to participating members.
New Strategies and Events
New Strategies
Alongside clarifying defence spending for the next decade, the DIP announced a few new strategies and one new event.
- Defence Finance and Investment Strategy (DFIS)
- To set out how government will work with private capital to support defence investment.
- Defence Strategic Approach to AI
- To coordinate AI implementation across Defence, alongside action plans and AI governance frameworks.
- Refreshed Combat Air Strategy
- To set out the UK’s long-term commitment to the combat air sector.
Planned Future Events
- Defence Investment Summit.
Political Party Reactions
James Cartlidge, Shadow Defence Secretary, said:
“This is too little, too late. Too little because it is barely more money than John Healey and Al Carns resigned over when they said Britain would be “less safe”. And too late because the plan is now almost a year overdue and only being rushed through because Keir Starmer is desperate for a legacy.
“This plan is not worth the paper it’s written on – Keir Starmer is Prime Minister in name only. The next Prime Minister needs to cut welfare and give our armed forces the funding they need to keep Britain safe. The problem is, it doesn’t matter who is in charge, all Labour MPs want is more benefits. Labour are now the welfare party.
“In this dangerous world, the British people and our armed forces deserve better than a failed, legacy-chasing Prime Minister forcing an inadequate defence plan on the nation. Only the Conservatives have a plan to keep Britain safe.”
Ed Davey, Liberal Democrat Leader, said:
“This late and underfunded plan is unforgivable. It is a political choice that makes us all less safe, puts jobs at risk and threatens businesses across the country in supply chains.
“The Government have dangerously short-changed our Armed Forces when they need urgent investment after years of Conservative negligence. Defence chiefs have been forced to make hard choices, when they should be given what they need.
“Andy Burnham needs to go much further and take up Liberal Democrat plans for defence bonds to give our Armed Forces the investment they need to keep our country safe.”
Dr Ellie Chowns, Leader of the Parliamentary Green Party, said:
“The Green Party recognises the need for the UK to properly invest in our safety, defence, and security – and to ensure that all defence spending decisions are underpinned by core principles such as the need to protect life, to support our service personnel, and to ensure value for money and future-proofing in procurement.
“Investment in our security needs to reflect the world we live in. That means strategic spending on cost-effective, high-tech, agile equipment, rather than bulkier, outdated models – and of course, unlocking the opportunity for further investment through a process of nuclear disarmament, rather than spending ever-more funds on weapons which must never be used.
“It also means recognising that safeguarding the UK’s security requires investment beyond guns and bombs. If we are to tackle the largest long-term threats to human security, defence spending must account for greater action on climate breakdown, food and water insecurity, pandemic preparedness, and cyber-attacks, both at home and abroad.
“And because it is public money at stake, we need to ensure proper transparency and accountability in defence contracting and spending. While of course confidentiality must be preserved where genuinely necessary, recent events such as the Mandelson scandal have served as a stark reminder of how back-room conversations in politics can place our national security at risk and damage public trust in the system – we cannot afford to repeat these mistakes.”