John Healey<\/a> \u2013 who quit earlier this month after accusing the prime minister of being \u201cunwilling to commit the resources\u201d needed to keep Britain safe<\/a> \u2013 suggested the final funding settlement of 2.7 per cent of GDP was not enough and urged the government to set out a target date for the UK to spend 3 per cent on defence. <\/p>\n While the \u00a315bn of funding allocated in the long-delayed DIP is \u00a31.5bn more than the \u00a313.5bn offer that was presented to Mr Healey a few weeks ago, it still falls well short of the \u00a328bn officials wanted. <\/p>\n And with Sir Keir set to leave office within weeks<\/a>, there is no guarantee that the funding set out today will still stand under the next prime minister. <\/p>\n Sir Keir \u2013 who said he would not cut day-to-day spending on frontline services to fund the DIP \u2013 said he had scrapped some capital projects that were not \u201cimmediately vital\u201d, including some roads and energy schemes, in order to make up the extra \u00a31.5bn. <\/p>\n However, Andy Burnham is set to face a headache in his first budget after the Treasury put off setting out full details of how it would fund the rise in defence spending. <\/p>\n In a written statement to Parliament, chancellor Rachel Reeves admitted that only two-thirds of the \u00a315bn allocation \u2013 \u00a310.3 billion \u2013 had been identified, while the remaining \u00a34.7 billion would be \u201cconfirmed at Budget 2026, in a fair and balanced way\u201d – meaning it will be left to the new prime minister to find the savings. <\/p>\n Max Werner, senior research economist at the Institute for Fiscal Studies, said the decision meant there would be \u201cfurther impacts on other areas of spending, tax or borrowing on top of those set out in today\u2019s announcements \u2013 implying one key early decision for the next prime minister\u201d.<\/p>\n Other key elements of the Defence Investment Plan include: <\/p>\n More than \u00a310bn worth of efficiencies will need to be found Storm shadow missiles and a number of military helicopters will be axed More \u00a35bn of spending will be allocated over the next four years to fund a \u201cdrone transformation\u201d for the armed forcesSpending on the nuclear deterrent will increase to reach 20-25 per cent of the Ministry of Defence\u2019s overall budget, with around \u00a364bn being poured into the sector\u00a3330m will be invested into critical underwater infrastructure The prime minister announced a \u201conce-in-a-generation\u201d \u00a350 billion defence export facility to help British firms compete internationally.<\/p>\n The MoD has also been told to find around \u00a311bn worth of cuts by 2029 as defence secretary<\/a> Dan Jarvis<\/a> admitted that \u201ctough choices\u201d would be necessary to make sure the armed forces are fit for the modern era. <\/p>\n The UK will scrap some older weapons and equipment, including Storm Shadow missiles and a range of military helicopters, as part of an attempt to make the military more efficient. <\/p>\n \u201cIncreased spending is only half the story. We have made tough choices, to stop doing things which were designed for another age, and invest in capabilities fit for the next war, not the last one\u201d, Mr Jarvis wrote in the foreword to the DIP.<\/p>\n Responding to the DIP, which was published on Tuesday afternoon, Mr Healey said: “I want the Defence Investment Plan to be a success. And I thank the MOD officials who’ve worked so hard over many months on it. I welcome the extra funding and focus the Treasury has ceded over the last couple of weeks.\u201d <\/p>\n But he warned: \u201cThe PM has made important new UK commitments. So we must now do more… Britain will still be spending just 2.7 per cent of GDP in 2030, the date when NATO has warned we could face a Russian attack. European security is at stake.\u201d <\/p>\n He demanded a target date for the government to spend 3 per cent of GDP on defence, and a “credible funding plan to meet our NATO commitment for 3.5 per cent on defence by 2035\u201d. <\/p>\n Former Labour defence secretary Lord Hutton also criticised the plan, accusing Sir Keir of not having been \u201cstrong enough\u201d. <\/p>\n \u201cIt certainly isn’t going to get us into a position, I’m afraid, where by the end of this parliament, our armed forces are war ready, because I think that’s really the challenge that we do face\u201d, he told Times Radio. <\/p>\n The DIP makes clear the government\u2019s intention to increase defence spending<\/a> to 3 per cent in the next parliament, adding that funding and plans will be \u201cset out at the next spending review<\/a>, where defence will be the number one priority\u201d. <\/p>\n While defence sources insisted it is \u201cincredible unusual for the Treasury specify what their top priority is ahead of the next spending review\u201d, armed forces minister Luke Pollard would not say whether or not Andy Burnham – who is expected to take over as prime minister within the next few weeks – had agreed to make defence the top priority at the next spending review, meaning there is no guarantee that the commitment will stand.<\/p>\n Mr Pollard also insisted that Britain is \u201cstill committed\u201d to spending 3.5 per cent of GDP on core defence by 2035.<\/p>\n The nearly \u00a311bn worth of efficiencies will include \u00a33.3bn worth of savings through civilian workforce changes – including a target to cut workforce costs by at least 10 per cent by 2030. <\/p>\n There are also plans to move regular personnel from administrative into frontline roles, alongside a goal to automate at least 20 per cent of HR, finance, and commercial functions by July 2028. Some \u00a32bn worth of savings will come from infrastructure, while \u00a33.7bn will come through reforms to acquisition and supply chain processes.<\/p>\n Defence sources insisted that the efficiency savings are \u201cnot directly connected to the spending uplift\u201d, with the \u00a315bn increase in spending power not conditional on the savings.<\/p>\n As part of a series of \u201ctough choices\u201d being made by the MoD, Storm Shadow missiles – Anglo-French long range, air-launched cruise missiles which allow Ukraine to strike deep into Russia – will be axed, the DIP reveals. <\/p>\n While Storm Shadow missiles have plated a \u201cvital role\u201d for the armed forces, the document says, ministers are \u201cnow pivoting to the next generation of low-cost cruise missiles, meaning we will get significantly more missiles at a reduced overall cost.\u201d<\/p>\n \u201cAlongside these types of weapons, Stratus missiles will be the future of the UK\u2019s complex weapons programme, delivering long range strikes against complex targets\u201d, it adds.<\/p>\n In another bid to save money, more than 30 Wildcat helicopters and Chinook helicopters will also be axed, along with plans to upgrade a satellite communications system.<\/p>\n Meanwhile, the ambition to increase the size of the cadet force by 30 per cent by 2030 has been delayed to 2035.<\/p>\n![\"Sir](\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/06\/2283476239...jpeg\")
Sir Keir Starmer gave a speech during a visit to Malloy Aeronautics in Berkshire (AFP\/Getty)<\/p>\n![\"John](\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/06\/2622de6a30d995a7202ac4e2aef04ce6Y29udGVudHNlYXJjaGFwaSwxNzgyOTA0MDUw-2.84815288.jpg\")
John Healey previously quit as defence secretary over military funding (James Manning\/PA) (PA Wire)<\/p>\n![\"Defence](\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/06\/01KWBZ504SNSXA5V0QSY9F51P1.jpg\")
Defence Secretary Dan Jarvis delivers a speech in Berkshire, following the publication of long-delayed defence investment plan (Dip) (PA)<\/p>\n