The MoD's budget is due to rise by 3.6% in real terms by 2029, under departmental spending plans fixed last year. The increase was weighted towards the long-term investment budget, which pays for new military kit, rather then the day-to-day budget that covers things like administration costs and salaries. Labour has pledged to raise overall defence spending from 2.3% to 2.5% of national income by 2027, estimated to cost an extra £6bn a year. This is not the first time that there have been warnings about the MoD's ability to fund its spending commitments. An MoD spokesperson said it was working "flat out" to finish the investment plan, adding that Labour had inherited an "underfunded defence programme" from the previous government.

Source: The Times January 09, 2026 23:35 UTC