Prime Minister Sir Keir Starmer is reportedly considering scaling back a planned increase in defence spending as ministers continue to face pressure over the state of the UK’s finances.
Reports suggest that a long-awaited Defence Investment Plan, expected to set out military spending over the coming years, could be reduced from an anticipated £18 billion package to around £15 billion.
According to reports, Sir Keir and Chancellor Rachel Reeves have held discussions about the plan amid concerns about the impact of international events on the economy, including disruption to global trade routes linked to the conflict involving Iran.
The Government has warned that continued disruption in the Strait of Hormuz, one of the world’s most important shipping routes, could have consequences for energy prices and economic growth.
However, opposition politicians and some defence commentators argue that wider economic challenges facing the Government cannot be attributed solely to international events, pointing to ongoing concerns over public spending and economic growth.
The Defence Investment Plan has faced several delays. It was originally expected to be published last year but has yet to appear as discussions continue between the Treasury and the Ministry of Defence.
Speaking to Times Radio, Chief Secretary to the Treasury Lucy Rigby declined to confirm reports that the planned investment could be lower than previously expected.
She said:
“I can confirm that we will be spending more money on defence.”
When asked whether the full £18 billion would still be allocated, Ms Rigby said the Government would publish details of the plan “soon”.
Defence Secretary John Healey has also stopped short of confirming whether the Treasury has approved the final package, although he has said the Government remains committed to publishing the strategy before a NATO defence ministers’ meeting in Germany later this month.
The issue is likely to increase scrutiny of the Government’s defence commitments. Sir Keir has pledged to increase defence spending to 3 per cent of GDP but has not yet provided a timetable for reaching that target.
Defence analysts have warned that the Armed Forces face significant financial pressures in the coming years. Some estimates suggest there remains a substantial gap between current funding plans and the level of investment required to meet future military commitments.
The publication of the Defence Investment Plan is expected to provide further details on how the Government intends to fund and equip Britain’s Armed Forces over the next decade.
With economic pressures continuing both at home and abroad, ministers face difficult decisions over how to balance defence spending with other demands on the public purse.
