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UK defence spending: explained

An explainer on UK defence spending, current plans, military shrinkage, and the fallout from the defence secretary's resignation.

UK

UK defence spending: explained

The UK’s defence spending plans are in turmoil after the resignation of Defence Secretary John Healey, who said the government was unwilling to commit the resources needed to defend the country. The row centres on the Defence Investment Plan (DIP), a long-delayed blueprint for how the UK will fund new equipment and infrastructure over the next decade. Healey walked out after seeing a version that would raise spending to only 2.68% of GDP by 2030 — well short of the 3% he and many allies say is needed. The crisis comes just weeks before a key NATO summit in Ankara, where Britain is expected to show it can meet its commitments.

At its simplest, the UK’s defence budget has been shrinking for decades. Since the end of the Cold War, the army has roughly halved, from 153,000 regular soldiers in 1990 to 73,790 today. The Royal Navy has gone from 48 major combat ships to just 13 (six destroyers and seven frigates), and the RAF’s combat jet fleet has fallen from more than 300 to around 144 — 107 Typhoons and at least 37 F-35 Lightnings. Reservists have also dropped from 76,000 to 25,770. The government’s own Strategic Defence Review, published in June 2025, warned that “state conflict has returned to Europe” and recommended the army not fall below 73,000.

An explainer on UK defence spending, current plans, military shrinkage, and the fallout from the defence secretary's resignation.

Why has this happened? After the Berlin Wall fell, the UK enjoyed a “peace dividend” — successive governments cut defence spending to free up money for other priorities. The proportion of GDP spent on defence has been on an almost constant downward path since 1990. Just to catch up, the current government has promised “the largest sustained increase in defence spending since the Cold War”, but that is a low bar: it only means reversing a tiny fraction of the cuts. Critics, including the former defence secretary and the head of the armed forces, argue that the planned rise to 2.68% by 2030 is too slow. NATO allies have set a target of 3.5% by 2035, and US President Donald Trump is pushing European members to spend more. Meanwhile, the war in Ukraine has shown how quickly drones (uncrewed aircraft) can transform battlefields — they now kill more people than traditional artillery — and analysts say the UK must invest heavily in this technology.

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For UK readers, the practical impact is threefold. First, it affects national security: a smaller military means less ability to deter threats like Russia or to protect British interests abroad. Second, it has a direct effect on service personnel — the number of people applying to join the regular army fell by 40% in 2025 compared to 2024, suggesting morale and recruitment are suffering. Third, it creates political tension: the Treasury has warned that meeting Healey’s demand for 3% of GDP would require cuts to schools and hospitals, because any extra defence spending must come from other departments. The DIP is supposed to lay out how this trade-off will work, but it has not yet been published.

Q: Why did John Healey resign? Healey resigned as Defence Secretary in June 2026 after seeing a draft of the Defence Investment Plan that would only raise spending to 2.68% of GDP by 2030. He said the plan “falls well short of what is required” and that Prime Minister Keir Starmer was “unable, and the Treasury has been unwilling, to commit the resources needed.” He wanted a target of 3% by 2030.

Q: How does UK defence spending compare to other NATO countries? NATO members agreed in 2025 to aim for 3.5% of GDP by 2035. The UK currently spends about 2.4% of GDP (using the NATO definition), and plans to reach 2.6% by 2027 and 2.68% by 2030. Germany and Poland have announced larger increases, and the US has repeatedly urged European allies to spend more.

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Q: What has happened to the size of the UK military since 1990? The army has fallen from 153,000 regular soldiers to 73,790; the Royal Navy from 48 major warships to 13; and the RAF from over 300 combat jets to about 144. The number of reservists dropped from 76,000 to 25,770. Drones, now a key part of warfare, did not exist in the UK arsenal in 1990.

What happens next is uncertain. Prime Minister Starmer has appointed Dan Jarvis as the new Defence Secretary. The NATO summit in Ankara is less than a month away, and Britain must show it has a credible plan. The DIP itself could be revised, but the Treasury is resisting larger increases. Healey’s resignation has also intensified a rebellion within Starmer’s own Labour Party. With defence, the economy and the UK’s international reputation all in play, the coming weeks will be crucial.

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