The long-awaited Defence Investment Plan (DIP) was published last week, setting out how the Ministry of Defence will allocate £298 billion of investment over the next four years, including £15 billion of additional spending on top of last year's Spending Review.
What are the main points of the DIP?
The Defence Investment Plan in More Detail
| Area | Investment | Detail |
| Nuclear deterrent | £63bn+ (4 yrs) | Dreadnought and SSN-AUKUS submarines, new warhead, plus 12 F-35As and NATO nuclear mission entry |
| Drones & autonomous systems | £5bn+ (4 yrs) | Includes £650m for expendable autonomous systems (drones, uncrewed ground vehicles) for Army, Commando Force and Special Forces |
| Global Combat Air Programme (GCAP/Tempest) | £8bn+ (4 yrs) | Sixth-generation stealth fighter, joint development with Japan and Italy; already supports 4,500 UK jobs |
| Project Royal Oak (naval base upgrades) | £26bn (10 yrs) | Faslane, Portsmouth, Devonport upgrades — largest naval base investment in 45+ years |
| Munitions & weapons | £11bn | Long-range strike weapons, low-cost cruise missiles, one-way effectors; at least six new energetics factories by 2030 |
| Digital Targeting Web | ~£2bn | AI- and software-underpinned integration of targeting and decision systems across services |
| Homeland & overseas base protection | £790m (4 yrs) | Radars, sensors, Directed Energy Weapons, Sea Viper upgrades, Integrated Air, Space and Missile Defence Operations Centre |
| Procurement reform & efficiency | £900m | £500m Transformation Fund (AI/workforce productivity), £400m towards a Multilateral Defence Mechanism |
| AI deployment acceleration | £100m | Prime Minister's Rapid AI Delivery Taskforce (RAID) |
| AI/biosecurity resilience | £115m | Defending against AI-enabled threats, including autonomous AI agent risks |
Separately, the Government also confirmed a new £50 billion Defence Exports facility, established by UK Export Finance, intended to help UK defence firms compete for international contracts. The Government also confirmed the plan will support more than half a million defence-related jobs across the UK by the end of the decade. Prime Minister Keir Starmer said the investment puts "the security of the British public first", adding that every pound in the plan would "work twice" — delivering both national security and economic growth.
This record investment puts the security of the British public first, transforming our Armed Forces and giving them the funding and equipment they need to fight and defend our nation. — Prime Minister Keir Starmer, 30 June 2026
Our Thoughts
The DIP arrives after a period of significant change in Defence leadership, including the resignation of the previous Defence Secretary and Armed Forces Minister in June, and a wider change in the Government's leadership.
This is a substantial, technology-forward plan that puts real money behind the areas — autonomy, drones, AI-enabled systems — where D3IP's Community has consistently shown strength. The scale of investment is significant, even if the trust in delivering on these plans and engaging SMEs is yet to be earnt.
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Sources: Ministry of Defence and Prime Minister's Office, "£15 billion new funding boost to transform Armed Forces and keep the UK safe", published 30 June 2026 | Ministry of Defence and HM Treasury, "Policy paper: The Defence Investment Plan", published 30 June 2026.
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