The following Statement was made in the House of Commons on Tuesday 30 June.
“With permission, I will make a Statement on the defence investment plan.
Our Armed Forces represent the very best of us, from our sailors patrolling the High North and protecting the seabed, to our pilots, air crew and air defence teams in the Middle East defending the skies, our paras in the south Atlantic and our marines in the channel. As I speak, we have personnel supporting the humanitarian mission in Venezuela, submariners beneath the waves maintaining our unbroken chain of protection, and planners at Permanent Joint Headquarters making the most extraordinarily complex challenges appear routine. Our service men and women rightly inspire respect, gratitude and pride across the House and across the nation. We all recognise that they serve at an increasingly dangerous and unpredictable moment in history. The central purpose of the defence investment plan, which we publish today, is to ensure that they have the kit and the technology they need in order to do the difficult job we ask of them. I know at first hand just how important that is, and when I was appointed Defence Secretary a couple of weeks ago I promised to get it right. Today, I make good on that promise.
Before I set out the details, I want to take the opportunity to thank the many hundreds of colleagues in the Ministry of Defence, in and out of uniform, who have worked so hard to prepare this plan. Over the last few weeks it has been a privilege to work with them, as it has been to work with my ministerial team. In particular, I pay tribute to the Minister for Defence Readiness and Industry, my honourable friend the Member for Plymouth Sutton and Devonport, Luke Pollard, who I know has invested many months in getting the plan right.
I also want to place on the record my profound thanks to my right honourable friends the Prime Minister and the Chancellor of the Exchequer for their support, and for the spirit of good will that has guided our negotiations over the past fortnight. They have, for two years, demonstrated steadfast commitment to our national security, and as a consequence our Armed Forces are better prepared and better supported today. It is important to add that Ukraine is still strong in the fight, and that over the past two years Britain has proved itself to be a reliable ally and a trusted partner.
I also pay tribute to my right honourable friend the Member for Rawmarsh and Conisbrough, John Healey, who, as Secretary of State, dedicated his time and worked in order to deliver this plan. He set out to the House in clear terms why he could not support an earlier version of the plan; I will lay out what has changed, and why I can support it.
More money matters—of course it does—but so do the choices that we make on how to spend it. I have therefore decided to reprioritise a further £1 billion in the plan, to ensure that it better reflects the way in which war is waged today. It will provide our service personnel with the capabilities that they need to deter and fight, now and in the years ahead. The war in Ukraine has seen battlefield technology advance faster than at any time in history, and few have done more to ensure that our Armed Forces have kept pace than my honourable and gallant friend the Member for Birmingham Selly Oak, Al Carns. I thank him for his service, and for the work that he did as a Minister. He will know that artificial intelligence, autonomy and uncrewed systems are no longer capabilities of the future, and through the DIP they will now receive the sustained investment that reflects their strategic importance.
This plan now commits more investment in our Armed Forces: £298 billion over the next four years. That includes an additional £15 billion on top of last year’s spending review settlement, of which most is extra day-to-day spending for training and improving the availability of ships and aircraft to increase our warfighting readiness. That is £1.5 billion more than when I took up this job just a couple of weeks ago, and it means that defence spending will now increase in real terms by 27% between 2023-24 and 2029-30. That is a bigger increase across a Parliament than any present Member of this House has ever seen. It means that the £74 billion allocated to our Armed Forces next year is now £20 billion more than the allocation in the last year of the previous Government, and it means that by the end of the decade the proportion of GDP spent on defence will be greater than it has been at any time during the last 30 years.
We have made some difficult but necessary decisions to fund this, but our fiscal rules have been upheld and day-to-day spending on front-line services has been protected. All departments were asked to contribute 1% of their capital budgets from this year, while those with larger resources—the Department for Transport with its roads budget, and the Department for Energy Security and Net Zero—were asked to make further contributions. Full details are set out today in a Written Ministerial Statement. To reinforce that additional investment, this Labour Government are announcing a new £50 billion defence export facility to support British defence firms in winning contracts across the globe.
More money matters—of course it does—but so do the choices that we make on how to spend it. I have therefore decided to reprioritise a further £1 billion in the plan, to ensure that it better reflects the way in which war is waged today. It will provide our service personnel with the capabilities that they need to deter and fight, now and in the years ahead. The war in Ukraine has seen battlefield technology advance faster than at any time in history, and few have done more to ensure that our Armed Forces have kept pace than my honourable and gallant friend the Member for Birmingham Selly Oak, Al Carns. I thank him for his service, and for the work that he did as a Minister. He will know that artificial intelligence, autonomy and uncrewed systems are no longer capabilities of the future, and through the DIP they will now receive the sustained investment that reflects their strategic importance.
Today, we commit the UK’s largest ever investment in drone warfare: £5 billion for strike, protector and surveillance drones across the Royal Navy, the Army and the Royal Air Force; anti-submarine vessels, uncrewed ground vehicles and fighter jets; a new uncrewed systems taskforce to rapidly develop and field new autonomous capabilities; and funding for Europe’s biggest drone testing site, the Uncrewed Systems Centre in Swindon, which I opened on my very first day in the job. That project is thanks to the efforts of my honourable friend the Member for Swindon North, Will Stone. We will also invest nearly £2 billion to integrate our Armed Forces through a new digital targeting web, underpinned by the most advanced AI and software, cutting the time from decision to strike faster than ever before, along with £100 million for the defence AI taskforce and another £115 million to raise our defences against the threats from AI.
It would be reckless to ignore the lessons from Ukraine, but it is important to remember that we are not Ukraine. We are a member of NATO, and a nuclear power. In this year alone our Armed Forces have been deployed to the High North and the Middle East, and they are now readying themselves for the prospect of regenerating Ukraine’s forces and reopening the Strait of Hormuz. All the while, they protect our island home and retain the ability to respond to crises in dangerous and distant lands.
Britain needs a flexible, hybrid, integrated, ‘high-low’ force that can deter and fight across every domain. That is why we are committing £8.6 billion to the Global Combat Air Programme, proudly in partnership with our allies, Japan and Italy. This next-generation stealth fighter jet is in addition to the £1.1 billion Typhoon upgrade, and will ensure that our RAF retains control of the skies. We will invest £26 billion to fund the most extensive naval base upgrades for nearly half a century, including at Faslane, Portsmouth and Devonport; £790 million to protect the UK homeland and our overseas bases from air, drone and missile threats; and £11 billion in munitions and weapons to increase UK stockpiles, including long-range strike capabilities, low-cost cruise missiles and one-way effectors. By 2030, we will build at least six new energetics factories.
In the end, it is people who win wars and preserve peace. By delivering three above-inflation pay rises, extending childcare provision and putting fully into law the Armed Forces covenant, this Labour Government have demonstrated our commitment to what matters most. Building on the work already done to fix 1,200 of the worst homes, today we commit £9 billion over a decade to raise the condition of military family housing to a standard that matches the service and sacrifice of those living in it. Through a new defence housing service, we will implement the defence housing strategy in full, fulfilling our moral obligation to personnel and their families.
Today, we commit £64 billion to fund Dreadnought and AUKUS submarines, a new warhead and other crucial nuclear work. Our independent nuclear deterrent is the ultimate guarantor of our security, and in providing the funding to renew it, we extend that promise long into the future. We will also purchase F35As and join NATO’s nuclear mission. Our security is now contested in every domain, so we will invest over £3 billion in space capabilities, £2.5 billion in cyber, and £400 million to protect our undersea cables and pipelines.
In the end, it is people who win wars and preserve peace. By delivering three above-inflation pay rises, extending childcare provision and putting fully into law the Armed Forces covenant, this Labour Government have demonstrated our commitment to what matters most. Building on the work already done to fix 1,200 of the worst homes, today we commit £9 billion over a decade to raise the condition of military family housing to a standard that matches the service and sacrifice of those living in it. Through a new defence housing service, we will implement the defence housing strategy in full, fulfilling our moral obligation to personnel and their families.
The DIP represents significant progress in implementing the vision set out in our strategic defence review. We will invest more and target better, but there is much more work to be done. It was not for nothing that the UK made a promise to our allies, just as they did to us: 3.5 by ’35. In a more dangerous world, our commitment to NATO is absolute. I gave my word to the Secretary-General and all our allies that our promise will be met, and a credible plan will be produced to ensure that it is. We will reach 3% in the next Parliament, with funding set out at the next spending review, in which defence will be the number one priority. Britain has always met our NATO spending commitments, and under this Government we always will. Britain has always stood with our allies, and under this Government we always will. This plan accelerates the development of deep-precision strike weapons and close support artillery with Germany, and it creates an amphibious combined fleet with the Netherlands. We will also invite Joint Expeditionary Force nations to join our Northern Navies initiative and build a hybrid force together.