The UK's plan to modernise its armed forces is stuck in limbo, raising questions about the nation's credibility with allies and the safety of its troops. At the heart of the issue is the Defence Investment Plan (DIP), a government blueprint that sets out how new military equipment and infrastructure will be funded over the next decade.
The DIP was originally due last autumn but is now expected before a Nato summit in Turkey on 7 July. Ministers including Defence Secretary John Healey have said the Prime Minister is "determined to publish it" by then. The plan follows the wide-ranging Strategic Defence Review published on 2 June 2025. But the delay has drawn sharp criticism from the Public Accounts Committee (PAC), a cross-party group of MPs that scrutinises government spending.
“Why the UK's Defence Investment Plan is delayed and what it means for spending, credibility, and public services.”
Chaired by Sir Geoffrey Clifton-Brown, the PAC said the hold-up undermines the UK's credibility with allies and makes procuring equipment more expensive. "Those responsible may argue there are good reasons for the DIP's continuing absence, but our report makes clear that excuses … simply do not cut it," Clifton-Brown said. The committee also noted that defence contractors are raising prices because of global instability, meaning delays could cost more in the long run.
Why has the DIP been delayed? The PAC report attributed it to the Ministry of Defence's failure to decide which capabilities, infrastructure and people it needs to transform the Armed Forces for modern warfare. Behind the scenes, there is reported wrangling within government over how to pay for the plan, which is expected to cost between £15bn and £18bn. The government has committed to raising defence spending to 3% of national income when economic conditions allow, with an interim target of 2.6% by 2027. Deputy Prime Minister David Lammy called that pledge "absolutely sacrosanct" and said "the money will be found". But filling the gap is likely to require cuts elsewhere.
For UK readers, the delays have real-world consequences. The armed forces may not get the modern equipment they need, affecting their readiness to deter threats such as a potential Russian attack on Nato territory, which Nato chief Mark Rutte has warned could happen within five years. The uncertainty also hits the defence industry and the jobs it supports. To raise the funds, the government is reportedly eyeing cuts to capital spending across all departments, raising around £6bn by the end of Parliament. That could mean less money for hospitals (the NHS already runs a £16bn maintenance backlog), railways, housing and net-zero projects. Unite general secretary Sharon Graham said the delay "is a threat to British jobs and skills and a threat to national security now and in the future".
Q: What is the Defence Investment Plan? A: It is a government strategy that explains how new military equipment, infrastructure and technology will be funded over the coming decade. It is meant to follow the Strategic Defence Review and set out a credible path for modernising the UK's armed forces.
Q: Why has the DIP been delayed? A: The Ministry of Defence has not yet decided which capabilities, infrastructure and people it needs, according to the Public Accounts Committee. There are also ongoing disagreements within government over how to pay for it, with ministers considering cuts to other departments' budgets.
Q: How might the DIP affect public services? A: To fund the defence uplift, the government is reportedly planning to reduce capital spending across departments by about 1%, raising some £6bn by the end of Parliament. This could mean cuts to projects for hospitals, railways, housing and net-zero initiatives.
What happens next? The DIP is due to be published before the Nato summit begins on 7 July. In the meantime, Cabinet discussions continue over which departments will face cuts. The Ministry of Defence insists the plan will "fix the outdated, overcommitted and underfunded programme we inherited" and deliver "the best equipment and technology into the hands of our frontline forces".