The Government has today published its Defence Investment Plan (DIP), a landmark statement of how the UK will spend £298 billion on defence over the next four years. Announced by the Prime Minister during a major speech at Malloy Aeronautics, the plan is backed by an additional £15 billion on top of last year’s Spending Review and sets out, in detail, how the vision of the Strategic Defence Review will be delivered – equipping the Armed Forces for the wars of today and tomorrow through new equipment and technology such as drones, autonomy and AI.

The plan lifts UK defence funding from £54 billion a year under the previous government to almost £80 billion a year by 2029, taking defence spending to 2.7% of GDP – the highest proportion in three decades – and putting the UK on track to meet NATO’s targets by 2035. It is also forecast to create nearly 60,000 extra direct and indirect UK industry jobs by the end of the decade, taking the total number of UK jobs supported by defence spending to more than half a million. For the businesses that make up the UK defence supply chain, the DIP provides the long-term certainty needed to invest, innovate and grow.

The Headline Announcements

Key funding commitments set out in the Defence Investment Plan include:

  • More than £8 billion for the Global Combat Air Programme (GCAP) — progressing the next-generation stealth fighter jet being developed with Japan and Italy. GCAP already supports 4,500 UK jobs and deepens industrial and technology collaboration with key allies.
  • More than £63 billion to strengthen the nuclear deterrent – funding Dreadnought and SSN-AUKUS submarines, a new warhead and other crucial nuclear work, plus the purchase of 12 F35As and the UK joining NATO’s nuclear mission.
  • £26 billion for Project Royal Oak – the biggest naval base upgrade in over 45 years, delivering multi-billion-pound investment at Faslane, Portsmouth and Devonport over the next decade.
  • Over £5 billion for a drone transformation – including £650 million for inexpensive, expendable autonomous systems such as drones and uncrewed ground vehicles to rapidly enhance the lethality of the Army, Commando Force and Special Forces.
  • Nearly £2 billion for a new Digital Targeting Web – integrating the Armed Forces and enabling faster decision-making, underpinned by world-leading AI and software.
  • £790 million for homeland and overseas base protection – defending against air, drone and missile threats with new radars and sensors, Directed Energy Weapons, a Sea Viper upgrade for Type 45 destroyers, expanded counter-drone systems and a new Integrated Air, Space and Missile Defence Operations Centre.
  • £11 billion for munitions and weapons – increasing UK stockpiles with long-range strike weapons, low-cost cruise missiles and one-way effectors. At least six new energetics factories will be built by 2030, boosting national munitions production.
  • £900 million to reform procurement – including a £500 million Transformation Fund for AI and workforce productivity, and an initial £400 million towards a new Multilateral Defence Mechanism.
  • £100 million for the Rapid AI Delivery Taskforce (RAID) – accelerating the deployment of AI-enabled capabilities into the hands of the Armed Forces.
  • A new £50 billion UK Export Finance facility – supporting British defence firms of all sizes to win contracts across the globe and strengthening the UK’s competitiveness in a rapidly growing market.

Prime Minister, Sir Keir Starmer said: “This record investment puts the security of the British public first, transforming our Armed Forces and giving them the funding and equipment they need to fight and defend our nation.

Dangerous & Volatile

The world is a more dangerous and volatile place, so it is only right we are boosting the number of troops on the ground, rebuilding ammunition stockpiles and investing in cutting-edge technology to ensure we outpace our adversaries for generations to come.

Every pound in this plan will work twice, delivering economic growth and opportunity for the British people, and supporting more than half a million jobs by the end of the decade, as well as reinforcing our national security.”

Chancellor of the Exchequer Rachel Reeves said: “I have boosted defence spending to the highest level since the Cold War – and today’s Defence Investment Plan goes further still, committing almost £300 billion over this Parliament to transform our Armed Forces. That’s more money, spent more effectively, to keep the country safe and back British industry, jobs and growth.”

Defence Secretary Dan Jarvis MBE MP said: “I know first-hand the importance of our Armed Forces having the kit and technology they need to do the difficult job we ask of them.

I have secured more money and made different choices for defence. We will invest £298 billion over the next four years. That includes an additional £15 billion, of which most is extra day-to-day spending for training and improving availability of ships and aircraft to increase our war-fighting readiness.

“By choosing to embrace new technology, I am equipping our troops with the autonomous systems which will give them the edge on the battlefield. This extra money and these choices send a clear signal to our allies and our adversaries alike: Britain is stepping up on security.”

Chief of the Defence Staff Air Chief Marshal Sir Rich Knighton said: “This plan sets out how and where we will invest in defence over the coming years to deliver the Strategic Defence Review and build the integrated force the nation needs. It also reflects both the importance of national defence and the vital contribution our Armed Forces make every day to keeping the country safe.”

From investment to contract: Join us at the DPRTE Defence Summit

The scale of ambition in the Defence Investment Plan can only be realised through a broad, agile and resilient supply chain. The drones, AI, advanced manufacturing, munitions and cyber capabilities it funds will depend on primes, mid-tier firms, SMEs and regional clusters working together to turn investment into delivered capability.

That is exactly the purpose of the DPRTE UK Defence Procurement & Supply Chain Summit, taking place at the Kimpton Clocktower Hotel, Manchester, on 22 October 2026. Themed “From Defence Investment to Contract: Where Your Organisation Wins Work,” the Summit connects government, industry and suppliers to translate the DIP and ongoing procurement reform into real, contracted opportunity – helping organisations understand where the growth is, how barriers are being reduced, and how to position early in an expanding defence market.

If your organisation wants to be part of delivering the Defence Investment Plan, register for the Defence Summit and secure your place at the table.

Source: Ministry of Defence press release, GOV.UK, 30 June 2026. Image: The Prime Minister, Sir Keir Starmer, announcing the DIP live on the BBC.