UK Defence Investment Plan Falls Short of NATO Goals Despite Increased Spending

The U.K.'s much-delayed Defence Investment Plan became a political headache for Keir Starmer's government and disappointed industry and Britain's allies. Even after revisions, the final document published Tuesday still leaves Britain short of its NATO spending goals.

The DIP, laid out by Starmer in one of his final acts as prime minister, sets out the U.K.'s defense budget over the next four years and sets spending goals for key weapons programs.

"By any measure, this is a huge historic shift for our nation and a legacy in which I take pride," Starmer said when making the announcement.

Here are the five key things to know about the DIP.

1. Britain is not on track to meet its NATO commitment

The plan says that the U.K. defense spending will reach 2.7 percent of GDP — up from the earlier 2.6 percent settlement that lead to former Defence Secretary John Healey quitting earlier this month.

In raw numbers, the U.K. will spend £297.7 billion on defense over the next four years, with the investment plan adding £15 billion to the military budget agreed last year — up from £13.5 billion when Healey quit. The government said it will spend £62.6 billion more on defense over the next four years than under earlier projections.

Even that level of spending is difficult for the U.K.'s cash-strapped government, which said that the increased funding will come from tightening non-military spending, asset sales and cutting international aid.

"Some capital projects, for example, on roads and energy, which are important but not immediately vital, will no longer go ahead as planned,” Starmer said.

Last year, NATO allies — under fierce pressure from U.S. President Donald Trump — agreed to spend 3.5 percent of GDP on core defense by 2035. The government notes that funding to reach 3 percent will be set out in next year’s spending review where defense will be “the No. 1 priority.”

The plan puts the U.K. well behind Germany, which aims to reach 3.7 percent of GDP on defense by 2030, becoming the continent's leading military spender.

Speaking in parliament, Healey underlined that the U.K. is falling short. "Britain will still be spending just 2.7 percent of GDP in 2030, the date when NATO has warned we could face a Russian attack," he said.

Despite that, NATO Secretary-General Mark Rutte welcomed the plan: "This is a good step towards reaching the 3.5% of GDP on defence agreed in The Hague last year."

2. Ukraine changes British procurement

There were concerns ahead of the DIP that key international arms projects with Britain’s allies could be sacrificed — but most survived. However, many expensive legacy projects were scrapped and money is going into preparing for the type of war being waged in Ukraine.

The Global Combat Air Programme scheme with Italy and Japan to develop sixth-generation combat jets will receive £8.6 billion in funding over the next four years.

The U.K. also earmarked £700 million as an initial investment with Germany to produce deep precision strike missiles following the Trinity House Agreement signed with Berlin in 2024.

Further missile and munition programs alongside France, Italy, Australia and the U.S. will also receive funding, along with submarine-hunting frigates with Norway and an amphibious combined fleet with the Netherlands.

The government also aims to spend £5 billion on drones — one of the lessons the U.K. military is drawing from the war in Ukraine.

However, Storm Shadow missiles — the British-French cruise missiles made by MBDA and used with great success by Ukraine — will be phased out in favor of new low-cost missiles.

3. More for nuclear deterrence

Britain’s nuclear deterrent still makes up a substantial portion of its defense budget, increasing spending on the Defence Nuclear Enterprise by £20 billion over the next four years, a 50 percent boost.

"It will deliver the UK’s renewal of the nuclear deterrent, with £64 billion of investment to build new submarines, develop a sovereign warhead and buy F35A jets," the Ministry of Defence said.

The Lockheed Martin jets will allow the U.K. to participate in the U.S. nuclear sharing program, where key allies carry U.S. atomic weapons on their aircraft.