BBC Verify questions whether defence investment plan has a funding black hole

Rachel Reeves has identified £10.3 billion of the government’s £15 billion Defence Investment Plan, leaving £4.7 billion to be confirmed at Budget 2026. Nearly a third of the package was still unfunded when it was announced, even though the written statement to Parliament set out that the money would come mainly from reallocations across government departments and be completed “in a fair and balanced way”.

The Defence Investment Plan is a summary of major investment choices rather than the full defence budget. The government is modernising the armed forces after inheriting an underfunded, overcommitted programme that was not aligned with current threats. It has tied the plan to Russian aggression and fast-moving military technology, while saying the remaining money will be settled later.

On 7 June 2026, the Public Accounts Committee said the long gap in publishing the plan had undermined the United Kingdom’s credibility with allies and weakened deterrence. It also said ministers still had not set out a credible route to deliver the capabilities promised in the 2023-2033 Equipment Plan, and warned that procurement delays were driving up costs for suppliers. In that market, the committee said, “time is money”.

The Ministry of Defence budget for 2026-27 stands at £68.3 billion, and the plan raises projected annual spending to £73.8 billion in 2027-28, £76.5 billion in 2028-29 and £79.1 billion in 2029-30. The government projects total defence spending of about £298 billion over the next four years, more than £60 billion above the Spring Budget 2024 path.

NATO’s wider target is spending 5% of GDP annually by 2035, with at least 3.5% for core defence requirements. The government aims to reach 2.7% of GDP by 2029 and 3.5% by 2035. Conservative leader Kemi Badenoch attacked the package at Westminster over the “missing” £5 billion, while Keir Starmer defended it as the biggest military funding increase in 40 years. Part of the plan is being covered by a 1% cut to Whitehall capital budgets, including some road and energy schemes.