Question to the HM Treasury:
To ask His Majesty's Government, further to the Defence Investment Plan announced on 30 June, by what date they intend to confirm the source of the remaining £4.7 billion of funding not yet identified; and what assessment they have made of the impact on other departments' capital budgets of reallocating £10.3 billion to fund the measures set out in the plan.
The Defence Investment Plan confirmed that of the £15 billion uplift to defence spending over the next four years, £10.3 billion is funded by reprioritising public spending from other departments.
The remaining £4.7 billion of funding will be confirmed at Autumn Budget 2026 in a fair and balanced way.
To fund the £10.3 billion already committed, departments have been asked to contribute 1p in every £1 of their capital budgets from this year. As departments with larger capital budgets, the Department for Transport (DfT) and the Department for Energy Security and Net Zero (DESNZ) have been asked to make further contributions.
DfT will provide savings of up to £700m from its roads funding, and will explore limited reductions to as-yet uncommitted roads funding.
DESNZ will find an additional £2 billion in savings - including £400m Financial Transactions – while maintaining the fastest-growing capital budget out of any department across this spending review period. They will reshape their capital budget in a way which continues to protect the clean power mission, drive renewable and nuclear build-out and insulate us from future gas price spikes on the path to energy independence.
Further detail will be set out at the Autumn Budget.