UK government to redirect £700 million from road projects to defence spending

The government will cancel selected road schemes to contribute £700 million toward a £15 billion defence funding increase announced earlier today. The Department for Transport is expected to save the amount by dropping projects that include the A38 Derby Junctions and the A46 Newark Bypass. These schemes had formed part of a £27 billion road investment strategy for England set earlier in 2026.

Defence spending increase The £15 billion boost will raise defence spending as a share of GDP to its highest level in 30 years by the end of the decade. It will also place the UK on track to meet NATO's 2 percent target by 2035 and support nearly 60,000 direct and indirect jobs.

Chancellor Rachel Reeves stated in a written statement that the Department for Transport would provide up to £700 million from road funding, with more detailed plans to be shared by the autumn.

Regional reaction East Midlands Mayor Claire Ward told Sky News the East Midlands appeared to be the only region required to sacrifice road investments for the defence plan. Lincoln MP Hamish Falconer and Mid Derbyshire MP Jonathan Davies both said they were disappointed by the lack of clarity and the potential effect on economic growth.

Falconer posted on social media that he would seek an urgent meeting with the incoming prime minister, chancellor and transport secretary. Consultations on the cancellations are scheduled for later this year once plans are finalised.