Extra £15bn Defence Boost: UK Moves to Strengthen Armed Forces
Defense investment over the next four years is expected to reach almost £298 billion. The plan is also expected to bring economic benefits.
This will allow defence spending to rise to 2.7% of GDP by 2029, the Prime Minister Sir Keir Starmer announced.
This plan builds on last year’s UK Strategic Defence Review, but in light of our rapidly changing world, the changing nature of conflict and the imminent and growing threats we face, it goes further still, - the British PM stated.
Annual defenсe spending will rise from £54 billion to almost £80 billion by the end of the decade, the British government announced. This is the highest level since the Cold War and a step towards meeting NATO commitments.
“The world is more dangerous, so we are increasing the number of troops, rebuilding ammunition stocks, and investing in cutting-edge technologies to stay ahead of our adversaries,” said the PM during a speech at Malloy Aeronautics.
Economic benefits
The plan is also expected to bring economic benefits – it will create nearly 60,000 new defense jobs across the UK by the end of the decade, bringing the total number to over half a million.
“Our motto here is “back British” - with every pound spent, wherever possible, on backing British workers, businesses and innovators. Delivering a defence dividend which brings SMEs and start-ups into the defence supply chains and pays off in every region and every community.” Starmer noted.
Fighter jets, drones and munition
The plan focuses on adapting the army to future warfare, with an emphasis on drones, autonomy, artificial intelligence, and international cooperation.
Over £8 billion over four years will be allocated for the Global Combat Air Program (GCAP), a program to build a sixth-generation fighter in cooperation with Japan and Italy.
Over £63 billion has been earmarked for strengthening nuclear deterrence, including the construction of Dreadnought and SSN-AUKUS submarines, a new warhead, and the purchase of 12 F-35A aircraft. The UK will also join NATO's nuclear mission, contributing the F-35A.
Over £5 billion for drone and autonomous weapons - the largest ever UK investment in this technology - including £650 million for low-cost, disposable autonomous systems for the army, commando forces, and special operations units.
Nearly £2 billion for the Digital Targeting Web – an integrated AI-powered targeting network enabling faster decisions and target destruction.
£790 million for defense against air, drone, and missile threats, including new radars, energy weapons, and a command center.
Over £500 million in new technology and capabilities for Commandos and Special Forces.
£11 billion for ammunition and weapons, including long-range and low-cost cruise missiles. At least six new factories will be built to produce them by 2030.
£115 million for the Rapid AI Delivery Taskforce (RAID) and additional funding for protection against AI threats.
Additionally, the British government will launch a £50 billion UK Export Finance fund to help British defenсe companies secure foreign contracts.
"We have increased defenсe spending to its highest level since the Cold War. This means more money, spent more effectively – on national security, British industry, jobs, and economic growth," Chancellor of the Exchequer Rachel Reeves emphasized.