The Chancellor will promise to deliver “security for working
people” and a “decade of national renewal”, as she reveals how
the Government will put advanced weaponry in the hands of British
troops, provide better homes for military families and kickstart
economic growth through the Plan for Change.
At tomorrow's Spring Statement, the Chancellor will announce a
further £2.2 billion funding increase for defence from April, as
she warns that Britain has to “move quickly in a changing
world”.
The funding will be invested in advanced technologies so that
Britain's armed forces have the tools they need to compete and
win in modern warfare. This includes guaranteeing the investment
to fit Royal Navy ships with Directed Energy Weapons by 2027.
These weapons can hit a £1 coin from 1km away and take down
drones at a distance of 5km.
It will also be used to provide better homes for military
families by refurbishing the defence estate – including over
36,000 homes recently brought back into public ownership from the
rental sector. In addition to this, the funding will unlock rapid
preparatory work, such as site surveys, planning and
architecture, for the major redevelopment of Armed Forces housing
through the Defence Housing Strategy.
The investment will also help fund upgrades to infrastructure at
His Majesty's Naval Base Portsmouth, securing its ability to
support Royal Navy operations into the future.
Speaking in the House of Commons tomorrow, Chancellor of
the Exchequer is expected to
say:
“This government was elected to change our
country.
“To provide security for working people. And deliver a decade
of national renewal.
“That work of change began in July – and I am proud of what
we have delivered in just nine months.
“Restoring stability to our public finances; giving the Bank
of England the foundation to cut interest rates three times since
the General Election; rebuilding our public services with record
investment in our NHS and bringing down waiting lists for 5
months in a row; and increasing the National Living Wage to give
3 million people a pay rise from next week.
She will
add:
“Now our task is to secure Britain's future in a world that
is changing before our eyes.
“The job of a responsible government is not simply to watch
this change.
“This moment demands an active government stepping up to
secure Britain's future. A government on the side of working
people.
“To grasp the opportunities that we now have and help Britain
reach its full potential, we need to go further and faster to
kickstart growth, protect national security and make people
better off through our Plan for Change.
She will also say:
“In February, the Prime Minister set out the government's
commitment to increase spending on defence to 2.5% of GDP from
April 2027 and an ambition to spend 3% of GDP on defence in the
next parliament as economic and fiscal conditions
allow.
“That was the right decision in a more insecure world,
putting an extra £6.4bn into the defence budget by
2027.
“But we have to move quickly in a changing word. And that
starts with investment.
“So I can today confirm that I will provide an additional
£2.2bn for the Ministry of Defence next year - a further
downpayment on our plans to deliver 2.5% of GDP.
“This increase in investment is not just about increasing our
national security but increasing our economic security, too.
“As defence spending rises, I want the whole country to feel
the benefits.”
The plan will include action to harness the ingenuity of
Britain's leading manufacturing and technology sectors, creating
jobs across the country and putting more money into people's
pockets.
The increase set to be announced today follows the extra £2.9
billion announced for defence in the Autumn Budget and takes
spending as a proportion of GDP to 2.36 per cent in 2025/26 - up
from 2.3 per cent in 2024/25.
The announcement is fully funded. The new money comes from
in-year funding from the Treasury reserve and from changes to the
Overseas Development Assistance budget, so will not require
additional borrowing and will maintain the Chancellor's ironclad
fiscal rule.
Further detail on the Ministry of Defence's investment plan will
be set out via the Strategic Defence Review in the Spring and the
Spending Review in June.
Commenting on the increase in defence spending, Defence
Secretary said:
"National security is the bedrock of a successful economy and
our Plan for Change. This significant increase in defence
spending, on top of the £2.9bn announced by the Chancellor at the
Budget, means an extra £5 billion for our Armed Forces next
financial year.
“This investment will make Britain stronger and safer in a more
insecure world. And it will ensure defence is an engine for
growth, creating good jobs across the nation.
"These are the bold first steps of the largest sustained increase
in defence spending since the Cold War announced by the Prime
Minister last month. Our government is delivering for defence and
investing in the outstanding men and women who keep Britain
secure at home and strong abroad.”
