The government announced on 30 June 2026 that it would spend much more money on defence. Annual military spending will rise from £54 billion to almost £80 billion by 2029. That is an increase of 27% in real terms.

In 2027–28, the Ministry of Defence will receive £74 billion, according to the published plan. This is £20 billion more than the previous government left for its final year. The government is also speeding up the moment when defence spending reaches 2.5% of the nation's annual economic output — from later in the decade to 2027. Ministers have said they want to reach 3% of output eventually, which would be higher than what any other NATO country has promised so far.

Where the money goes

The biggest single investment is in drones. More than £5 billion will be spent over four years, making this the largest drone project in UK military history. More than £1 billion of that will pay for a digital system that helps ground troops target and attack enemies. This system should be fully working by 2027.

The armed forces also need new accommodation. Navy and military personnel have been living in poor housing for years. The plan adds more than £1.5 billion to fix up bases and build better living quarters.

The RAF's Eurofighter Typhoon jets are getting an upgrade costing £204.6 million. The new radar system — called ECRS Mk2 — will help the aircraft detect and fight other aircraft and missiles much better. The government confirmed this contract in June 2025.

The UK is also giving Ukraine more money for weapons and equipment: a surge package of £450 million. £350 million of this comes from the yearly £4.5 billion that Britain is spending to help Ukraine's military.

What opponents say

The Liberal Democrats disagree with the plan. Party leader Ed Davey said on 30 June 2026 that it was "late and underfunded." The party's defence spokesperson, James MacCleary MP, has raised questions about how the government is approaching this. The Liberal Democrats plan to use a parliamentary tool called a Humble Address to force the government to release more information about how the plan will work. (A Humble Address is a formal request that compels the government to provide documents or answer questions.)

The Liberal Democrats have also suggested a different way to pay for defence — something called Defence Bonds — but the government has not adopted that idea.

What this means

Moving from 2.3% to a target of 3% of the nation's annual economic output is a big change in how Britain spends money. The last time the UK spent this much on defence was in the early 1990s. If Britain reaches 3% now, the annual military budget would be over £90 billion — more than the entire NHS (the health service) was spending at the start of this decade.

There is one big question the plan does not answer: what happens after 2029? The government wants to reach 3%, but it has not said when or how it will find the money. This is exactly what the Liberal Democrats want to know more about. The Treasury — which controls the nation's purse strings — will have as much to say about this as the Defence Ministry.