Overview
- An MoD assessment presented before Christmas by Air Chief Marshal Sir Richard Knighton reportedly warned Sir Keir Starmer of a £28 billion gap to 2030, in a meeting also attended by Chancellor Rachel Reeves and Defence Secretary John Healey.
- The Defence Investment Plan, expected before Christmas, has been delayed as the prime minister ordered officials to revise it, with reports suggesting publication could slip to March.
- Sources attribute the gap to higher inflation, troop pay rises and nuclear deterrent costs, and say the British Army is most exposed with the £6.3 billion Ajax armoured vehicle programme cited as at risk.
- Government officials insist spending is rising to record levels, totalling about £270 billion this parliament, and reaffirm targets to reach 2.5% of GDP on defence by 2027 while declining to deny the £28 billion figure.
- The funding concerns surface as the UK supports a US operation against a Russian‑flagged tanker and joins France in planning a multinational force for Ukraine if a ceasefire occurs, with Healey visiting Kyiv on Friday.