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UK to Raise Annual Defence Spending to £80 Billion by 2029

The move is meant to bring Britain closer to NATO spending targets but its delivery is uncertain because the prime minister has announced his resignation and a leadership change is likely before key decisions.

Overview

  • Prime Minister Keir Starmer unveiled the Defence Investment Plan on Tuesday, June 30, 2026, committing the UK to boost annual defence spending to £80 billion by 2029.
  • The plan adds about £15 billion to current annual defence outlays and the Ministry of Defence said it will direct more than £5 billion over four years to drones and autonomous systems while reshaping the Royal Navy toward a 'hybrid' fleet with self‑steering ships.
  • NATO Secretary‑General Mark Rutte publicly welcomed the announcement and the government says the package moves Britain toward targets set by NATO, including a 3.5% of GDP military spending goal for 2035 and a 4.2% figure for broader security without a specified timetable.
  • Delivery is in doubt because Starmer announced his resignation this month and former defence secretary John Healey resigned earlier saying the plan falls 'far short' of requirements, leaving it unclear whether the likely successor will adopt or change the proposals.
  • Officials acknowledge meeting the pledge will require reprioritising domestic projects such as infrastructure and energy, critics say the build‑up is still insufficient for high‑end warfighting, and the plan will face immediate scrutiny at the NATO summit in Ankara on July 7.