Overview
- The Office for Budget Responsibility says an extra £32bn in today’s money is needed to reach the 3.5% of GDP defence goal by 2035.
- The Budget restates rises to 2.6% by 2027 and up to 3% by 2035 but provides no route to fund the £32bn gap, though Treasury sources say the 2027 path is planned.
- The National Audit Office’s previously identified £16.9bn shortfall in the 2023–33 equipment plan remains unresolved.
- Reports of a roughly £2.6bn hole in 2025–26 funding and suggestions of Type 31 frigate delays were contested by officials, with the Royal Navy saying the programme is progressing.
- The MoD’s latest figures show the Armed Forces headcount barely increased year on year and the Army has fewer fully trained soldiers, intensifying readiness concerns raised by experts.