Britain plans £15 billion defense spending increase over four years

Prime Minister Keir Starmer pledged on Tuesday to spend an extra £15 billion to modernize Britain’s armed forces over the next four years. The plan increases annual defense spending by 5 percent and will reach £79 billion a year by 2029. The announcement came after a previous draft prompted the defense minister’s resignation in June over concerns that funding was insufficient.

Starmer said the new blueprint includes £5 billion for drones and autonomous weapons, a hybrid navy, and a more lethal army.

Funding sources and shortfalls A government document showed that £4 billion will come from cutting long-term public investment and £2.8 billion from transport and energy projects. Another £4.7 billion remains undefined and will need to be addressed in the 2026 budget.

Defense chiefs had sought £28 billion, and some critics said the shortfall could delay equipment purchases or reduce training and maintenance.

NATO context and industry response Starmer will present the plan at a NATO meeting in Ankara on July 7-8. NATO Secretary General Mark Rutte called it a good step toward the alliance’s 3.5 percent of GDP defense target. BAE Systems, Britain’s largest defense company, said the spending commitment provides clarity for industry planning.

Its CEO stated that increased defense spending is vital to sustaining specialist skills.