UK finance minister pledges major defence overhaul, national security upgrade

British finance minister Rachel Reeves will allocate more than £2 trillion ($2.7 trillion) in public spending, outlining the Labour government's fiscal and political priorities in a pivotal address to parliament. The multi-year spending framework aims to instil a sense of national renewal while delivering on the government’s promises of economic growth and improved public services.

Defence remains a key area of focus, with plans already confirmed to raise military spending to 2.5 per cent of GDP—announced by Prime Minister Keir Starmer in February, Caliber.Az reports, citing UK government.

Minister Reeves has confirmed a substantial £11 billion real-terms increase in defence spending over the forthcoming spending review period, in a move designed to reinforce the United Kingdom's Armed Forces, stimulate domestic industry, and strengthen national security at a time of global uncertainty.

This significant funding uplift will equip the Ministry of Defence with the resources and capital required to begin implementing the Strategic Defence Review. Key priorities include rebuilding core military capabilities and bolstering the UK’s intelligence infrastructure.

A central pillar of this investment is the allocation of £15 billion for a sovereign nuclear warhead program, which is expected to sustain over 9,000 skilled jobs across the country. In parallel, £7 billion has been earmarked for a once-in-a-generation overhaul of military accommodation infrastructure, delivering modern, high-quality living conditions for service personnel and their families.

Additionally, £6 billion will be directed towards munitions procurement and production. This includes significant investment in the UK’s defence supply chains and manufacturing facilities, aimed not only at enhancing operational readiness but also at supporting over 1,000 domestic jobs and unlocking future export opportunities.

Beyond traditional defence, the government is committing at least £280 million per year by 2028–29 to reinforce border security, including the expansion of the Border Security Command. This initiative is targeted at dismantling transnational people-smuggling networks that facilitate dangerous Channel crossings via small boats.

In tandem, a minimum of £400 million annually will be dedicated to reforming the UK's asylum system by 2028–2029. These reforms will expedite asylum application processing, expand appeals capacity, and facilitate the return of individuals whose claims are rejected. Crucially, the funding will also support efforts to phase out the costly and controversial use of hotel accommodation for asylum seekers.

These measures reflect a strategic recalibration of the UK’s defence and security posture, with an emphasis on resilience, economic opportunity, and restoring public confidence in national border and immigration systems.

Reeves will present day-to-day budgets for government departments covering 2026 to 2029, alongside investment strategies stretching to 2030. The overall spending envelope was set during her October budget, funded by the largest tax increase in a generation and looser fiscal rules allowing greater borrowing for long-term investments.

In total, £86 billion has been allocated for research and development, £16 billion for public transport, and £4 billion for prison infrastructure.

By Vafa Guliyeva