Question to the HM Treasury:
To ask His Majesty's Government how much of the funds transferred from overseas development assistance expenditure to defence may be used by the armed forces on revenue expenditure rather than capital expenditure, in (1) real terms, and (2) as a percentage; and whether this was discussed with Service Chiefs in advance.
The Prime Minister announced on 25 February 2025 that NATO qualifying defence spending would increase to 2.5% GDP in 2027-28. This would be fully funded by a reduction in ODA spending from 0.5% to 0.3% GNI.
The Spring Statement document, published on 26 March, set out the Resource DEL and Capital DEL uplifts to defence spending over the scorecard period.
The proportion of this uplift that will be allocated to the MOD budget is to be determined as part of the Spending Review 2025, which will conclude on 11 June 2025.
The Defence Secretary will continue to work with the Service Chiefs in the usual way.