Talk about ramping up defence spending has taken centre stage in the UK recently, as the government faces growing pressure from Nato and global realities demanding stronger military readiness.
Defence Secretary John Healey has made it clear that increasing military spending is a priority, but the question of how to pay for it remains unresolved — and tax rises are now firmly on the table.
Healey insists he’s “100 per cent confident” the government will meet Nato’s recommended spending level of 3 percent of GDP, which would mean boosting the defence budget by roughly £14 billion from today’s 2.5 percent target.
However, he hasn’t laid out a clear timeline or funding strategy yet, sparking debates about the possible impact on public finances and political promises.
Nato’s Growing Demands and the US Factor
Nato members are facing mounting pressure to increase their defence budgets.
While the UK is currently set to raise spending to 2.5 percent of GDP by April 2027, the alliance is pushing for a 3.5 percent target, plus an additional 1.5 percent investment in cyber and security measures.
This push is largely driven by the US, with former President Donald Trump advocating for Nato allies to spend as much as 5 percent of GDP — even more than the US itself spends.
If Nato members agree to the higher 3.5 percent target, the UK’s defence budget could jump by about £28 billion, although exact deadlines and funding methods remain unclear.
The Strategic Defence Review: Modernising the Military
A grim assessment of the UK’s current military capabilities came with the latest Strategic Defence Review (SDR), which called for major changes focused on cutting-edge technologies like drones and artificial intelligence (AI).
The report emphasizes that hitting the 3 percent spending goal is essential to bring these ambitious plans to life.
In line with this, the government has committed an additional £5 billion to future military tech, including £4 billion for drones and autonomous systems, plus £1 billion for laser weapons to protect British forces.
These investments aim to revolutionize the UK’s defence capabilities and better prepare the armed forces for modern threats.
Cutting-Edge Tech: Drones, Lasers, and AI
Drones have proven their worth in recent conflicts, particularly in Ukraine, where they are responsible for a significant share of battlefield damage.
The UK plans to expand its drone capabilities dramatically, setting up a dedicated ‘drone centre’ to fast-track integration across the Army, Navy, and Air Force.
Meanwhile, laser-based Directed Energy Weapons (DEWs) like the DragonFire system are being developed to offer cost-effective, high-tech defence against aerial threats.
These systems could save millions by replacing traditional missiles that cost thousands per shot with lasers costing about £10 per blast.
Artificial intelligence is another big focus, expected to speed up decision-making and enhance operational effectiveness.
The Ministry of Defence plans to launch an AI Investment Fund by 2026 to accelerate this transformation.
Ambitious Goals: From Lethality to Integration
The SDR sets out bold ambitions, such as making the Army “ten times more lethal” by harnessing new tech like drones and advanced artillery systems.
While measuring “lethality” is tricky, the plan aims to dramatically improve the UK’s combat effectiveness by 2030.
Another major change involves integrating the Army, Navy, and Air Force more closely into a unified “Integrated Force.”
This isn’t a merger but a shift toward coordinated training and operations to eliminate traditional service silos.
Nuclear Deterrence and Submarine Expansion
The UK is also investing heavily in its nuclear capabilities, pledging £15 billion to upgrade warheads and modernize the Atomic Weapons Establishment.
There’s also a plan to build up to 12 new nuclear attack submarines over the coming decades, supporting the UK’s role in the AUKUS alliance with the US and Australia.
These submarines, expected to enter service from the late 2030s, will replace the current fleet and bolster Britain’s strategic presence in the Pacific amid rising tensions with China.
Boosting Munitions Production and Long-Range Weapons
To prepare for prolonged conflicts, the review calls for at least six new factories producing munitions and explosives, ensuring the UK can rapidly scale up weapons manufacturing when needed.
This move responds to depleted stockpiles after supplying billions in aid to Ukraine since 2022.
Additionally, plans include producing over 7,000 new long-range weapons to restock military reserves and strengthen Britain’s ability to sustain a high-intensity conflict.
Engaging the Public and Expanding Reservists
Defence leaders also want to foster greater understanding and support for the military among young people, partnering with the Department for Education to run outreach events and expand cadet programs by 30 percent by 2030.
The goal is to have 250,000 cadets nationwide, many of whom could later join the armed forces.
The report stresses the need to increase the number of reservists by at least 20 percent when funding permits, adding experienced personnel to bolster regular troops in case of extended military operations.
What Lies Ahead?
John Healey’s confidence in hitting Nato’s spending targets faces real-world challenges like economic slowdowns and the political complexity of raising taxes.
Meanwhile, the UK’s defence strategy is shifting dramatically towards cutting-edge technology, integration, and long-term preparedness.
As global threats evolve, Britain’s military ambitions grow bolder — but turning these plans into reality will require tough financial decisions and sustained political will over the coming decade.