The Chief of the Defence Staff has called on Andy Burnham, the likely next Prime Minister, to significantly increase funding for the United Kingdom's armed forces. Air Chief Marshal Sir Richard Knighton stated that the military requires an additional £25 billion per year for the next nine years, on top of existing spending schedules, to meet NATO's defense spending target of 3.5 percent of GDP.
This projected total of £225 billion between 2026 and 2035 would necessitate either a 3 pence increase in income tax or equivalent cuts to other government departments. The Ministry of Defence's ten-year development plan, known as the Strategic Defence Review (SDR), is contingent on the Treasury committing this level of funding.
Sir Richard's remarks were made during a visit to a drone factory in Cambridgeshire. He emphasized that meeting NATO requirements and delivering the SDR necessitates spending 3.5 percent of GDP, a commitment made by the Prime Minister and other leaders at a NATO summit in The Hague last year.
These demands come as outgoing Prime Minister Sir Keir Starmer is reportedly leaving a £4.7 billion deficit for his successor. This shortfall includes an immediate £1.8 billion payment required for defense running costs in 2026, which must be addressed in the upcoming autumn budget.
The Ministry of Defence is also facing £10 billion in efficiency savings and is expected to engage in a £400 million asset-stripping exercise. Defence properties and land are slated for sale over the next four years, although the success of achieving expected prices is uncertain. Former Defence Secretary Sir Ben Wallace commented that the Ministry of Defence has been leveraging these assets for a decade, expressing skepticism about the valuations and the sustainability of the plan.
According to the Ministry of Defence, a Defense Investment Plan (DIP) provides an additional £15 billion, primarily for day-to-day operational needs like training and improving the availability of ships and aircraft. This figure is also supported by projected income from 'MOD reprioritisations' and 'Treasury support for international objectives,' the latter of which official defense sources stated represents the Treasury assuming liability for UK support to Ukraine, previously a Ministry of Defence responsibility.
Shadow Defence Secretary James Cartlidge criticized the Labour's Defense Investment Plan, calling it insufficient in both spending increases and promised capabilities. He also raised concerns about the plan to sell off assets without clear identification or sale timelines.