Defence Investment Plan

Nusrat Ghani Excerpts

Tuesday 30th June 2026 Commons Chamber

[The Secretary of State for Defence (Dan Jarvis)]

With permission, I will make a statement on the defence investment plan.

Our armed forces represent the very best of us, from our sailors patrolling the High North and protecting the seabed, to our pilots, aircrew and air defence teams in the middle east defending the skies, our Paras in the south Atlantic and our Marines in the channel. As I speak, we have personnel supporting the humanitarian mission in Venezuela, submariners beneath the waves maintaining our unbroken chain of protection, and planners at Permanent Joint Headquarters making the most extraordinarily complex challenges appear routine. Our servicemen and women rightly inspire respect, gratitude and pride across the House and across the nation. We all recognise that they serve at an increasingly dangerous and unpredictable moment in history. The central purpose of the defence investment plan, which we publish today, is to ensure that they have the kit and the technology they need in order to do the difficult job we ask of them. I know at first hand just how important that is, and when I was appointed Defence Secretary a couple of weeks ago I promised to get it right. Today, I make good on that promise.

Before I set out the details, I want to take the opportunity to thank the many hundreds of colleagues in the Ministry of Defence, in and out of uniform, who have worked so hard to prepare this plan. Over the last few weeks it has been a privilege to work with them, as it has been to work with my ministerial team. In particular, I pay tribute to the Minister for Defence Readiness and Industry, my hon. Friend the Member for Plymouth Sutton and Devonport (Luke Pollard), who I know has invested many months in getting the plan right.

I also want to place on the record my profound thanks to my right hon. Friends the Prime Minister and the Chancellor of the Exchequer for their support, and for the spirit of good will that has guided our negotiations over the past fortnight. They have, for two years, demonstrated steadfast commitment to our national security, and as a consequence our armed forces are better prepared and better supported today. It is important to add that Ukraine is still strong in the fight, and that over the past two years Britain has proved itself to be a reliable ally and a trusted partner.

I also pay tribute to my right hon. Friend the Member for Rawmarsh and Conisbrough (John Healey), who, as Secretary of State, dedicated his time and worked in order to deliver this plan. He set out to the House in clear terms why he could not support an earlier version of the plan; I will lay out what has changed, and why I can support it.

This plan now commits more investment in our armed forces: £298 billion over the next four years. That includes an additional £15 billion on top of last year’s spending review settlement, of which most is extra day-to-day spending for training and improving the availability of ships and aircraft to increase our warfighting readiness. That is £1.5 billion more than when I took up this job just a couple of weeks ago, and it means that defence spending will now increase in real terms by 27% between 2023-24 and 2029-30. That is a bigger increase across a Parliament than any present Member of this House has ever seen. It means that the £74 billion allocated to our armed forces next year is now £20 billion more than the allocation in the last year of the previous Government, and it means that by the end of the decade the proportion of GDP spent on defence will be greater than it has been at any time during the last 30 years.

We have made some difficult but necessary decisions to fund this, but our fiscal rules have been upheld and day-to-day spending on frontline services has been protected. All Departments were asked to contribute 1% of their capital budgets from this year, while those with larger resources—the Department for Transport with its roads budget, and the Department for Energy Security and Net Zero—were asked to make further contributions. Full details are set out today in a written ministerial statement. To reinforce that additional investment, this Labour Government are announcing a new £50 billion defence export facility to support British defence firms in winning contracts across the globe.

More money matters—of course it does—but so do the choices that we make on how to spend it. I have therefore decided to reprioritise a further £1 billion in the plan, to ensure that it better reflects the way in which war is waged today. It will provide our service personnel with the capabilities that they need to deter and fight, now and in the years ahead. The war in Ukraine has seen battlefield technology advance faster than at any time in history, and few have done more to ensure that our armed forces have kept pace than my hon. and gallant Friend the Member for Birmingham Selly Oak (Al Carns). I thank him for his service, and for the work that he did as a Minister. He will know that artificial intelligence, autonomy and uncrewed systems are no longer capabilities of the future, and through the DIP they will now receive the sustained investment that reflects their strategic importance.

Today, we commit the UK’s largest ever investment in drone warfare: £5 billion for strike, protector and surveillance drones across the Royal Navy, the Army and the Royal Air Force; anti-submarine vessels, uncrewed ground vehicles and fighter jets; a new uncrewed systems taskforce to rapidly develop and field new autonomous capabilities; and funding for Europe’s biggest drone testing site, the Uncrewed Systems Centre in Swindon, which I opened on my very first day in the job. That project is thanks to the efforts of my hon. Friend the Member for Swindon North (Will Stone). We will also invest nearly £2 billion to integrate our armed forces through a new digital targeting web, underpinned by the most advanced AI and software, cutting the time from decision to strike faster than ever before, along with £100 million for the defence AI taskforce and another £115 million to raise our defences against the threats from AI.

It would be reckless to ignore the lessons from Ukraine, but it is important to remember that we are not Ukraine. We are a member of NATO, and a nuclear power. In this year alone our armed forces have been deployed to the High North and the middle east, and they are now readying themselves for the prospect of regenerating Ukraine’s forces and reopening the strait of Hormuz. All the while, they protect our island home and retain the ability to respond to crises in dangerous and distant lands.

Britain needs a flexible, hybrid, integrated, “high-low” force that can deter and fight across every domain. That is why we are committing £8.6 billion to the global combat air programme, proudly in partnership with our allies, Japan and Italy. This next-generation stealth fighter jet is in addition to the £1.1 billion Typhoon upgrade, and will ensure that our RAF retains control of the skies. We will invest £26 billion to fund the most extensive naval base upgrades for nearly half a century, including at Faslane, Portsmouth and Devonport; £790 million to protect the UK homeland and our overseas bases from air, drone and missile threats; and £11 billion in munitions and weapons to increase UK stockpiles, including long-range strike capabilities, low-cost cruise missiles and one-way effectors. By 2030, we will build at least six new energetics factories.

Today, we commit £64 billion to fund Dreadnought and AUKUS submarines, a new warhead and other crucial nuclear work. Our independent nuclear deterrent is the ultimate guarantor of our security, and in providing the funding to renew it, we extend that promise long into the future. We will also purchase F-35As and join NATO’s nuclear mission. Our security is now contested in every domain, so we will invest over £3 billion in space capabilities, £2.5 billion in cyber, and £400 million to protect our undersea cables and pipelines.

In the end, it is people who win wars and preserve peace. By delivering three above-inflation pay rises, extending childcare provision and putting fully into law the armed forces covenant, this Labour Government have demonstrated our commitment to what matters most. Building on the work already done to fix 1,200 of the worst homes, today we commit £9 billion over a decade to raise the condition of military family housing to a standard that matches the service and sacrifice of those living in it. Through a new Defence Housing Service, we will implement the defence housing strategy in full, fulfilling our moral obligation to personnel and their families.

The DIP represents significant progress in implementing the vision set out in our strategic defence review. We will invest more and target better, but there is much more work to be done. It was not for nothing that the UK made a promise to our allies, just as they did to us: 3.5 by ’35. In a more dangerous world, our commitment to NATO is absolute. I gave my word to the Secretary-General and all our allies that our promise will be met, and a credible plan will be produced to ensure that it is. We will reach 3% in the next Parliament, with funding set out at the next spending review, in which defence will be the No. 1 priority. Britain has always met our NATO spending commitments, and under this Government we always will. Britain has always stood with our allies, and under this Government we always will. This plan accelerates the development of deep precision strike weapons and close support artillery with Germany, and it creates an amphibious combined fleet with the Netherlands. We will also invite Joint Expeditionary Force nations to join our Northern Navies initiative and build a hybrid force together.

I now have a responsibility to make the plan work, not least given what Cabinet colleagues have forgone from their budgets in order to support mine. My commitment to them, and indeed to the British public, is that with the requirement to spend more on defence comes a duty to spend more wisely on defence. This plan includes a pledge to make substantial savings by the end of this Parliament, as well as a commitment to drive down fraud and error across defence.

I am grateful to our partners in industry for their counsel and support during this process. I know that recent months have not been easy, but with the DIP now published, I am relying on the full spectrum of our industrial base to make it a success: primes and small and medium-sized enterprises; workers and trade unions; and innovators and investors. Together, we will ensure that the benefits of this plan will be felt right across the United Kingdom. We will develop sovereign and dual-use technologies, increase exports, generate growth and reindustrialise our economy.

Today, I am proud to confirm that with the publication of the DIP comes the promise of greater security for families and new opportunities for our young people. According to MOD analysis, this plan will support nearly 60,000 additional good, skilled jobs right across our Union. That will be achieved alongside a culture shift in procurement.

Ultimately, the success of this defence investment plan will be measured by whether it commands the support of the amazing men and women who serve in our armed forces. They remain our most important asset—respected by those who stand with us, and feared by those who stand against us. We know that they are equal to any task, and with this defence investment plan, we give them the means to match their courage. I commend this statement to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Secretary of State, it is good form to let the Speaker’s Office know if one is going to speak for more than the allocated time. I will now have to give extra time to the other Front Benchers as well. I call the shadow Secretary of State.

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[Dan Jarvis]

I am very grateful to my right hon. Friend for his service in government. He did an excellent job as Defence Secretary, and I absolutely aim to build on the work he did. I know he will share the pride that this Government have in the commitment we have already made of £298 billion over the next four years, with £15 billion of new money in this plan and an increase in defence spending in real terms of 27% up to 2029-30.

However, my right hon. Friend is right: we do need to do more. We will need to spend more on defence, and that is why there was a clear commitment that that will be a No. 1 priority at the next spending review. We have an absolute obligation to our armed forces and to our allies. When I talk to my NATO allies, they look to the United Kingdom for leadership. We have provided that leadership over a number of years, including under the previous Government, and this Government will continue to provide that leadership.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[James MacCleary (Lewes) (LD)]

I thank the Secretary of State for advance sight of his statement, albeit 14 months late and one Defence Secretary later.

The Liberal Democrats welcome investment in the technologies reshaping warfare in Ukraine and beyond. Our armed forces must be more agile and better equipped to deal with the threats we face. However, let us be clear: this defence investment plan is too little, too late. After years of Conservative neglect, Britain needed a Government willing to match the scale of the challenge. Instead, we have had months of delay, and we now have a plan that still appears to have a significant gap between the ambition and the resources required. In particular, it is hugely concerning to see how little is allocated to air defence. It is hundreds of millions short of what was recommended in the strategic defence review, and inadequate to protect our islands and, indeed, our allies.

The Prime Minister himself has warned that Russia could pose a direct threat to NATO by 2030, yet the architects of the strategic defence review, General Sir Richard Barrons and former Labour Defence Secretary and NATO Secretary-General Lord Robertson, have both made it clear that the current funding is not enough. Just weeks ago, the Defence Secretary resigned because he believed the funding settlement on offer was not sufficient to keep Britain safe. The new settlement does not bridge that gap, yet the new Defence Secretary claims it is enough. Were both the experts and the former Defence Secretary wrong about this, or does the Defence Secretary truly believe this is enough funding to keep Britain safe?

The Liberal Democrats have welcomed plans to sort out the sorry state of forces housing, so it is concerning to hear reports that funding is being found by raiding existing defence budgets, including for military housing. If that is true, what message does the Secretary of State have for serving personnel and their families still living in mouldy homes? Is this genuinely new investment or simply moving money from one overstretched budget to another?

The last thing our armed forces and defence industry need is more uncertainty. Between delays to the DIP, a change of Defence Ministers and now a new Prime Minister incoming, they have already dealt with a lot. It is reported that the right hon. Member for Makerfield (Andy Burnham), who looks certain to become Prime Minister in the coming weeks, is sympathetic to the Liberal Democrat plan for defence bonds. Despite the Prime Minister appearing to rule it out in his speech today, can the Secretary of State confirm whether defence bonds are at least under consideration to provide the injection of funding our armed forces so desperately need?

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[Dan Jarvis]

I am grateful to my hon. and gallant Friend for his work in this area. I know he has a particular percentage in mind, and I am keen to discuss it more with him. I hope that he will acknowledge today, though, that the DIP brings forward the largest ever investment in drone warfare: £150 million more for homeland counter-drone defences; £50 million more over the next 12 months for the Army’s taskforce Rapstone; £150 million for a new uncrewed vehicle programme for the Army; and £150 million for the Royal Marine Commandos, with the same hybrid model of crewed and autonomous insertion craft and drones. I hope he will acknowledge that there has been a refocusing and a sharpening of the plan over the past couple of weeks to ensure that we learn the lessons from Ukraine. But I know, because he has been around the block a bit, that he will also understand that while we must learn the lessons from Ukraine, we are not Ukraine and we still have other responsibilities as a major power within NATO. That is why what I have to do is ensure we have a balanced set of capabilities. I am confident that that is the balance we have achieved today.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Father of the House.

[Sir Edward Leigh (Gainsborough) (Con)]

Many wonder whether aircraft carriers are going to go the way of the old battleships, uniquely vulnerable to drones that cost a tiny fraction of their cost. To protect aircraft carriers, we need destroyers and frigates. Moreover, in two world wars we relied completely on destroyers and frigates to protect our food supply, so will the Secretary of State say more about the replacement of our ageing frigate and destroyer fleet, particularly with regard to the Type 45 and Type 83 destroyers?

[Dan Jarvis]

I am grateful to the Father of the House, not least because it gives me the opportunity to pay tribute to all those who serve at sea and do extraordinary work in the service of the Royal Navy. As an island nation, the capabilities they provide are mission critical for us. That is why, between now and the end of 2030, we expect the Royal Navy to take delivery of five new warships and the final Astute class attack submarine; and in the same period we will bring our first large autonomous surface and sub-surface autonomous platforms into service. Those who work in the Royal Navy do exceptional work on behalf of our nation and we will make sure that they have the resources and capabilities they need to keep our country safe.

[Madam Deputy Speaker]

I call the Chair of the Defence Committee.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

I thank the Secretary of State for the ministerial briefing beforehand and for allowing Defence Committee members advanced sight of the defence investment plan. I also welcome that we now have a fully funded plan, backed by the Treasury, that is scalable for key facets such as housing, training, workforce recovery, AI, integrated air and missile defence, and munition stockpiles.

However, there is no clear pathway to reach 3% of GDP spend. Despite assurances that the DIP would go further than previous defence equipment plans, it actually contains less detail: there is no full 10-year expenditure plan; there is no breakdown between procurement and support costs; and much of the investment appears to be backloaded beyond 2030. Will my right hon. Friend commit to fight for more funding for defence, so we reach the 3% of GDP spend by 2030? Will he commit to building more in Britain to stimulate sovereignty and economic growth? What operational risks have been accepted in the interim while there have been cuts to investment in certain areas? When will our Committee be furnished with the full details, so that effective parliamentary scrutiny can be undertaken?

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[Michelle Scrogham (Barrow and Furness) (Lab)]

I welcome that this Government are prioritising the delivery of our nuclear deterrent, including investment in not only the current but the all-important future submarine programmes. The shadow Secretary of State said it was too little, too late. The price that the Liberal Democrats demanded for the coalition Government of 2010 was not renewing our nuclear deterrent, and the Conservatives were happy to pay that price so, yes, they are really bloody late! Part of the cost of that decision is being paid by our submariners, forced to remain at sea for over 200 days in an ageing fleet.

We have to be honest with the people of Great Britain: our food supply chains are being tested, our energy infrastructure is being mapped—

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. Is there a question?

[Michelle Scrogham]

Our MOD is under a cyber-attack every day. Does the Secretary of State agree that if we told the public the truth, they would be more willing to go along with those difficult decisions?

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[Dan Jarvis]

I would be happy to have a more detailed conversation with the right hon. Gentleman offline about his points. He will know that a massive programme of transformation has recently been set out by the First Sea Lord. We are working through the detail of that to ensure and satisfy ourselves that we have the right capabilities. As I have said, I pay tribute to all those who serve in our armed forces, particularly those who serve at sea in the way that the right hon. Gentleman described. It is an important capability, and we will ensure that we have the right capabilities, in the right place, at the right time.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Chair of the Treasury Committee.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

I have had the opportunity to look over defence equipment plans for the last 13 years, and have repeatedly seen—a profiling from over a decade—huge optimism about savings and efficiencies, which is how plans get across the line of affordability. Will the Secretary of State commit to ensuring that there is proper parliamentary scrutiny of the plan, through the Public Accounts Committee, the Defence Committee and, hopefully next week—if Ministers from both the Treasury and Ministry of Defence agree to attend—the Treasury Committee, at a meeting including Defence Committee colleagues?

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[Navendu Mishra (Stockport) (Lab)]

The Secretary of State is right to say that the benefits of this plan will be felt right across the UK; it will increase exports, generate growth and reindustrialise our economy. I am proud to represent KNDS in Stockport, which manufactures military bridges and Boxer armoured vehicles. I am grateful to the Minister for Defence Readiness and Industry for visiting me in October for a factory tour. Will the Secretary of State ensure that the benefits of this investment are felt right across the UK, including in Stockport and Greater Manchester? In addition, Stockport is just a short drive from Barnsley; will he join me on a visit to KNDS?

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Just a yes, Secretary of State.

[Dan Jarvis]

I am grateful to my hon. Friend for the representations he has made on behalf of KNDS. I understand its important work well. He is right to emphasise the importance of ensuring that this significant investment of £15 billion, sitting in the continuum of investment that we have seen, needs to provide economic growth and jobs right across the country—and it will. It will provide nearly 60,000 new jobs. We should be hugely proud of that, not least because a significant proportion of those jobs will be spread right around the country. I would be very pleased to visit his Stockport constituency.