Downing Street has moved to reaffirm the Government's commitment to defence spending after revelations that the Prime Minister was warned of a massive £28 billion shortfall in the Ministry of Defence budget.
Chief of Defence Staff Sounds the Alarm
Air Chief Marshal Sir Richard Knighton, the Chief of the Defence Staff, reportedly informed Sir Keir Starmer that an internal MoD assessment had identified the enormous funding gap, which spans the period from now until 2030. The meeting, which also included Chancellor and Defence Secretary John Healey, took place in the run-up to Christmas.
The Prime Minister's official spokesman, while not commenting directly on the private briefing, stated that the Government recognises "demands on defence are rising". This is attributed to growing Russian aggression, increased operational needs, and preparations for a potential UK deployment to Ukraine.
Defence Investment Plan Overhaul Ordered
The disclosure of the financial black hole is understood to have prompted Sir Keir to order a significant overhaul of the Defence Investment Plan (Dip). This crucial blueprint, which will detail how the strategic defence review is delivered, has already been delayed from its initial expected publication in autumn 2025.
When pressed repeatedly by journalists, the PM's spokesman did not deny that the £28 billion figure was accurate. Instead, he pointed to the Government's existing commitments, stating: "The UK defence budget is rising to record levels... totalling £270 billion in this Parliament alone."
Sir Richard, who assumed his role in September 2025, is directly responsible for delivering the strategic defence review published in June. That review committed the UK to increasing defence spending to 2.5% of GDP by 2027, with an ambition to reach 3% in the next Parliament subject to economic conditions.
Global Tensions Underline Funding Crisis
The news of the budgetary crisis emerges against a backdrop of heightened global military activity involving UK forces. This week, Britain pledged to place troops on the ground in Ukraine following any ceasefire. UK assets also recently supported a US operation to seize an Iranian oil tanker in the Atlantic, part of a so-called "shadow fleet" evading sanctions.
Defence Secretary John Healey was in Kyiv on Friday 9 January 2026 for talks with President Volodymyr Zelensky. Simultaneously, Sir Keir held discussions with German Chancellor Friedrich Merz and French President Emmanuel Macron, condemning Russia's "escalatory and unacceptable" use of an intermediate-range ballistic missile in western Ukraine.
The Prime Minister also emphasised the need for NATO to "step up" in the Arctic to deter Russia, a point he reinforced in a second call with US President Donald Trump on Thursday.
In response to the growing pressure, an MoD spokesperson said: "We are working flat out on the defence investment plan, which will fix the outdated, overcommitted, and underfunded defence programme we inherited." The statement underscores the significant challenge facing the Government as it seeks to align ambitious strategic goals with fiscal reality.
