UK defence plan faces £4.7bn funding gap

Prime Minister Sir Keir Starmer unveiled a Defence Investment Plan that adds £15 billion to British defence spending, lifting total outlays to about £298 billion over four years and aiming to raise defence spending from 2.6% to 2.7% of GDP by 2030.

The Treasury has identified only £10.3 billion of savings to fund the boost, leaving a £4.7 billion shortfall that will have to be covered in the autumn budget. Incoming Prime Minister Andy Burnham was told of the gap only after the plan was published, prompting criticism that he was “blindsided”.

Opposition figures, including Shadow Defence Secretary James Cartlidge and the SNP, have demanded a clear statement on which public‑service programmes – such as road, energy or hospital projects – will be cut to meet the shortfall. Defence Secretary Dan Jarvis and Defence Minister Luke Pollard say the new prime minister will ensure the investment proceeds, while the Treasury warns against additional borrowing.