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PM announces £15bn defence investment plan but says some road and energy projects will be scrapped

The plan lifts annual defence spending to £80 billion by 2029 and shifts funding from roads and energy projects, officials said.

  • Prime Minister Sir Keir Starmer announced a £15 billion defence investment plan on Tuesday, scrapping road and energy projects to fund military upgrades.
  • Following weeks of Whitehall wrangling, Defence Secretary Dan Jarvis secured the necessary funding after former defence secretary John Healey resigned earlier this month, claiming he was offered only £13.5 billion.
  • Chancellor Rachel Reeves stated the funding comes from "reprioritising spending" across Government by reallocating capital budgets by one penny in every pound, protecting frontline health and education services.
  • Annual defence spending will increase from £54 billion to £80 billion by 2029 as Sir Keir aims to reverse the "corrosive hollowing out" of the military, acknowledging there were "no easy answers."
  • This announcement may represent one of Sir Keir's final acts as Prime Minister before handing over power to Andy Burnham, though he stated he is "absolutely certain" his successor will continue the investments.
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Sydney Morning HeraldSydney Morning Herald
+3 Reposted by 3 other sources
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Starmer’s parting gift lays a trap for Burnham and sets up a showdown with Trump

On his way out the door, the British prime minister unveiled the UK’s long-awaited defence spending plan, but the grand vision falls short of the US president’s demands on NATO allies.

·North Sydney, Australia
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Las Vegas Sun broke the news in Las Vegas, United States on Tuesday, June 30, 2026.
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