Prime Minister Sir Keir Starmer will unveil the highly-anticipated Defence Investment Plan (DIP) in one of his final acts as Prime Minister. The announcement is set to take place on Tuesday.
The plan commits £298 billion in investment over the next four years. This figure includes an additional £15 billion above previous spending estimates.
Starmer stated that the funding aims to transform the UK's armed forces, increase military readiness, and invest in new equipment and technology, such as drones and autonomous systems.
The plan has faced criticism for being delayed. It has also faced criticism regarding the amount of funding allocated.
Former defense secretary John Healey resigned over concerns that the proposed spending was insufficient.
Critics argue that the £15 billion increase falls short of the £28 billion reportedly sought by defense officials. Critics further argue that the plan does not adequately address immediate threats.
Key areas of investment include £5 billion for drone technology and autonomous systems. An allocation of £8.6 billion is designated for the Global Combat Air Programme (GCAP) to develop a next-generation fighter jet.
A separate portion of the plan allocates £64 billion for modernizing the UK's nuclear deterrent.
The funding strategy involves reprioritizing public spending. This includes cuts to other government departments' capital budgets and reallocation from road and energy projects.
Some reports indicate that the funding for military housing upgrades has been adjusted, with costs shifted beyond 2030.
The plan aims to increase defense spending to 2.7% of GDP by 2029/30. This represents an increase from 2.3%, which was the level when the current government took office.
There is a commitment within the plan to reach 3.5% of GDP by 2035, in line with NATO allies.
The DIP is expected to create nearly 60,000 additional direct and indirect jobs in the UK defense industry by the end of the decade.