UK set to invest £68 billion to modernise armed forces

The UK government faces significant spending pressures as a long-awaited strategic defence review recommends an estimated £68 billion investment to prepare the armed forces for modern warfare. The review outlines a comprehensive plan to transform the British military, incorporating advanced technology such as drones, autonomous vehicles, and AI to create a new “digital warfighter.”

Among the major expenditures highlighted are costly upgrades including new nuclear warheads, submarines, and fighter jets. Following the report’s release on June 2 , shares in leading UK defence companies saw a sharp increase, Caliber.Az reports per Financial Times. 

“This is the most profound change to Britain’s armed forces in 150 years,” said General Sir Richard Barrons, co-author of the review.

Prime Minister Sir Keir Starmer declined to commit to a specific date for increasing defence spending to the government’s target of 3 percent of GDP. However, he pledged that the UK’s streamlined armed forces will achieve “warfighting readiness.” The government has already promised to raise spending from 2.3 percent to 2.5 percent of GDP by 2027, an increase of about £6 billion annually.

The Strategic Defence Review (SDR) states the goal is to “increase national warfighting readiness so that, if needed, the UK can transition to, scale for, and sustain a war against a ‘peer’ adversary.” It also stresses the importance of learning from Ukraine’s recent experience in land warfare, drone operations, and hybrid conflict to shape Britain’s modern warfighting approach.

“The threats we face are more serious and unpredictable than at any time since the end of the cold war,” Defence Secretary John Healey told MPs. “Our adversaries are working more in alliance with one another while technology is changing how war is fought. For too long our army has been asked to do more, with less.”

The report’s 62 recommendations, all accepted by the government, carry an estimated cost of at least £67.6 billion through to the late 2030s. This includes a £15 billion investment in new nuclear warheads and the procurement of up to 12 new attack submarines by the end of the next decade, developed through the Aukus partnership with the US and Australia. Naval warfare expert Sid Kaushal of the Royal United Services Academy estimated the submarines could cost roughly £2.6 billion each, based on the US Virginia Class Block V guided-missile attack submarines.

Additionally, the SDR recommends buying new F-35 stealth fighters and developing the Global Combat Aircraft Programme (GCAP), a 6th-generation fighter jet produced jointly with Italy and Japan. Justin Bronk, an air power expert at RUSI, estimated the GCAP development could cost the UK £10-12 billion, while an additional 27 F-35s could run around £100 million each.

By Sabina Mammadli