Ministry of Defence: Budget Shortfall

Debate between Lord Coaker and Lord Young of Cookham

Thursday 15th January 2026 Lords Chamber

[Lord Young of Cookham]

To ask His Majesty’s Government whether there is a shortfall of £28 billion in the budget of the Ministry of Defence over the next four years.

[The Minister of State, Ministry of Defence (Lord Coaker) (Lab)]

My Lords, the defence investment plan will set out how we will deliver the vision set out in the Strategic Defence Review. It will be a coherent, fully costed and affordable plan against the defence budget. Over the course of this Parliament, the Government have committed to the greatest sustained investment since the Cold War, with over £270 billion going into defence. We have set a further ambition to spend 3% in the next Parliament and joined NATO allies in a commitment to spend 5% on national security from 2035.

[Lord Young of Cookham (Con)]

I am grateful to the Minister for that reply. The Chief of the Defence Staff has rightly warned the country about the growing threat from Russia and other countries and the need for adequate preparation. In response to questions about the £28 billion shortfall on Monday before the Defence Select Committee in another place, the Chief of the Defence Staff, while not directly answering the question, said:

“Right now, we are in a position where we are forecasting to spend more than the budget we have”.


Does it not follow that without extra cash from the Treasury, over and above the sums the Minister has just referred to, the Government may have to postpone or abandon major programmes?

[Lord Coaker (Lab)]

The defence investment plan will deal with choices according to the budget that it has set for it. Even if you increase the budget, you still have to make choices about what you spend that money on. The Chief of the Defence Staff and the other chiefs are involved in this, discussing what capabilities we need, with the budget that we have, to ensure that we have the war-fighting readiness we need. Those choices are taking place.

Considerable sums of money are being spent at present—billions of pounds. I keep repeating this: under current plans, the total budget in 2024-25 was £60.2 billion; in 2008-29, on current plans, it will be £73.5 billion. Billions of pounds of additional money is being spent. We are seeking to ensure that we spend it properly and appropriately to fight the wars of the future.