Overview
- An internal Ministry of Defence assessment reported a roughly £28 billion shortfall over the next four years, with Air Chief Marshal Sir Richard Knighton said to have briefed Keir Starmer before Christmas.
- Starmer instructed officials to revise the Defence Investment Plan, which slipped from a pre-Christmas release and could be pushed to March, creating uncertainty for suppliers, according to sources.
- Senior figures say the Army faces the greatest pressure, with potential cuts or delays to major programmes such as the £6.3 billion Ajax armoured vehicle project.
- Officials and military sources cite inflation, troop pay settlements and rising nuclear deterrent costs as drivers of the gap, while the MoD stresses record funding totaling £270 billion this parliament.
- The budget strain coincides with tougher postures toward Russia, including action against a shadow fleet tanker and planning with France for a possible Ukraine deployment after a ceasefire, as the government insists it is on track to deliver the strategic review.