UK government unveils £15bn hike in defence spending

30th Jun 2026 12:54

(Sharecast News) - The British government is to ramp up investment in drones and strengthen the country's nuclear deterrent as part of a £15bn hike in defence spending, it was confirmed on Tuesday.

Speaking at Malloy Aeronautics, outgoing prime minister Keir Starmer said the long-delayed defence investment plan (DIP) would prioritise the public's security while "transforming our armed forces and giving them the funding and equipment they need to fight and defend our nation".

He continued: "The world is a more dangerous and volatile place, so it is only right we are boosting the number of troops on the ground, rebuilding ammunition stockpiles and investing in cutting edge technology to ensure we outpace our adversaries for generations to come."

Over £5bn will be spent over the next four years on drone development, with £63bn allotted over the same period to strengthen the UK's nuclear deterrent and to fund the Dreadnought and SSN-AUKUS submarines. The DIP also includes money to build a next-generation stealth fighter jet for the Royal Air Force and to upgrade naval bases at Faslane, Portsmouth and Devonport.

In total, defence spending will rise from £54bn a year under the previous government to nearly £80bn by 2029.

Defence secretary Dan Jarvis said: "By choosing to embrace new technology, I am equipping our troops with the autonomous systems which will give them the edge on the battlefield.

"Britain is stepping up on security."

Jarvis replaced former incumbent John Healey, who resigned earlier this month over concerns that the DIP did not go far enough. A further £1bn has been committed in the wake of his departure.

Starmer will now present the plan at Nato 's next meeting in July in Turkey, where he is expected to confirm the UK is committed to reaching defence spending of 3.5% of GDP by 2035. However, he acknowledged that his likely successor, recently-elected MP Andy Burnham, could yet "build" on the DIP's blueprint. It is understood that Burnham has backed the DIP.

UK defence stocks rallied following the announcement. BAE Systems rose 2% at 1840.5p, Babcock International was 3% stronger at 948.4p, QinetiqQ sparked 2% at 420.47p, Rolls-Royce Holdings was ahead 3% at 1,459.6p while Chemring Group rocketed 7% at 519p.