The Chief of the Defence Staff has called on the likely next Prime Minister, Andy Burnham, to secure substantial additional funding for the British Armed Forces. Air Chief Marshal Sir Richard Knighton stated that the services require an extra £25 billion per year for the next nine years, totaling £225 billion from 2026 to 2035.
This increased investment, which would necessitate a 3 pence rise in income tax or equivalent cuts elsewhere, is crucial for the UK to meet the NATO spending target of 3.5 percent of its Gross Domestic Product (GDP). The Ministry of Defence's ten-year Strategic Defence Review (SDR) is contingent on the Treasury committing this level of long-term funding.
Speaking during a visit to a drone factory in Cambridgeshire, Sir Richard emphasized the need to meet NATO requirements. His demands come as the outgoing Prime Minister, Sir Keir Starmer, leaves a projected £4.7 billion deficit in defense funding for his successor, with an immediate £1.8 billion payment required for defense running costs in 2026.
Further financial pressures on the Ministry of Defence include £10 billion in efficiency savings and a planned £400 million asset stripping exercise over the next four years. This involves selling off defense properties and land, though the realization of expected sale prices is uncertain. Former Defence Secretary Sir Ben Wallace criticized this approach, calling it an "old trick" started by George Osborne and noting that the MOD has been borrowing against these assets for a decade, casting doubt on the reality of the funds generated.
According to the MOD, the current Defence Investment Plan (DIP) provides an additional £15 billion, largely for day-to-day spending on training and improving the availability of ships and aircraft. This figure is further supported by an estimated £600 million from internal MOD reprioritizations and £2.4 billion from Treasury support for international objectives. Official defence sources indicated that the Treasury is now accepting liability for UK support to Ukraine, previously a MOD responsibility.
Shadow Defence Secretary James Cartlidge criticized Labour's DIP, stating that the promised increase in spending is insufficient and the promised capabilities are delayed. He also raised concerns about the MOD's reliance on asset sales, noting that the specific assets and sale timelines remain unclear. The plan's feasibility and effectiveness have been questioned, with claims that it represents a "settlement to standstill" rather than enabling the expenditures outlined in the SDR.