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Downing Street Defends Defence Budget After Reports of £28bn Shortfall and Plan Delay

A pre-Christmas briefing from the chief of the defence staff prompted a rework of the Defence Investment Plan that has left programmes and industry awaiting clarity.

Overview

  • An MoD assessment last year identified a £28bn gap to 2030, which Air Chief Marshal Sir Richard Knighton presented to Keir Starmer in a Downing Street meeting with Rachel Reeves and John Healey.
  • The Defence Investment Plan, originally due before Christmas, has been pushed into early 2026 with some reports pointing to March as officials rework costings.
  • No 10 says defence spending will total £270bn this parliament and did not dispute the reported figure, stressing work is under way on the plan.
  • Military sources say cuts or delays are being weighed, with the Army seen as most exposed and the £6.3bn Ajax armoured vehicle programme cited as vulnerable.
  • Officials attribute the gap to higher inflation, troop pay rises and nuclear deterrent costs, as UK commitments expand with support to a tanker seizure, a UKFrance pledge on Ukraine and John Healey’s visit to Kyiv.