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MoD Faces £28bn Funding Gap as Starmer Orders Defence Plan Rework

Rising costs tied to inflation, troop pay increases, nuclear programmes are straining delivery of the Strategic Defence Review.

Overview

  • An internal assessment pointing to a £28 billion gap to 2030 was delivered to Keir Starmer before Christmas by Air Chief Marshal Sir Richard Knighton, with John Healey and Rachel Reeves present.
  • Downing Street has instructed officials to rework the Defence Investment Plan, pushing publication from its pre-Christmas target into the new year and unsettling procurement timelines.
  • Military sources cite inflation, personnel pay and nuclear deterrent costs as key pressures, with the Army flagged as most exposed and the £6.3 billion Ajax armoured vehicle programme reported as at risk.
  • The Ministry of Defence says overall spending is rising to record levels, totaling £270 billion this parliament, and states it is working flat out to finalize the plan.
  • Operational pressure is intensifying as the UK supported a US operation to seize a Russian‑flagged tanker and the UK and France outlined plans for a potential multinational force in Ukraine if a ceasefire is reached.