Britain's defence spending surge funded by road and energy cuts

The UK government has launched a £298 billion Defence Investment Plan (DIP) covering the next four years, adding £15 billion to the defence budget and targeting a rise to 2.7 % of GDP by 2030 and NATO’s 3 % goal by 2035. The extra funding is being sourced from cuts to other public spending, notably up to £700 million from the Department for Transport’s road budget and £2 billion from the Department for Energy Security and Net Zero.

New Defence Secretary Wes Streeting said the plan has already generated more than £11.8 billion of contracts within ten days of publication, declaring “Defence is up and flying again.” He also unveiled the Brontanax “loyal‑wingman” drone – a BAE Systems autonomous fighter‑jet concept – and announced a £708 million contract extension for the Global Combat Air Programme alongside a £300 million investment in the StormFighter project.

Chancellor John Healey, appointed after his resignation as defence secretary, pledged that the UK will meet its NATO defence commitments, while acknowledging the fiscal challenge of raising the required funds. The overall package aims to modernise the armed forces, boost the domestic defence industry, and re‑industrialise key sectors despite the accompanying reductions to road and energy projects.