Prime Minister Keir Starmer is moving forward with a £14 billion ($26.7 billion) defence investment plan (DIP) ahead of a NATO summit scheduled for July 7 in Ankara, despite resistance from Labour leadership contender Andy Burnham. The proposed plan, which has been a source of significant internal dispute, represents one of Starmer’s major policy initiatives before he departs Downing Street.
The DIP aims to increase defence spending in line with NATO commitments, addressing concerns over the United Kingdom’s military funding and capabilities. However, internal government sources indicate that the £14 billion allocation still falls short of what is deemed necessary by senior defence officials, with fears it may necessitate cuts to major projects. The plan’s release has been complicated by the approaching leadership transition within the Labour Party; nominations to replace Starmer open on July 9, with a new leader expected to take office around July 17.
Burnham, who won the Makerfield by-election and announced his leadership bid, expressed a desire to decide on the DIP himself due to its significant implications for his prospective premiership. His allies acknowledged there was little to prevent Starmer from publishing the plan but signaled that a review would likely follow once Burnham assumes office. In their first conversation since Burnham declared his candidacy, the two leaders reportedly discussed the defence plan, though neither party has disclosed details of their exchange.
Former Defence Secretary John Healey resigned recently over disputes surrounding the DIP’s funding, citing the plan’s inadequacy to meet national security needs. Healey had sought at least £18 billion in additional defence funding and a commitment to reach 3 percent of GDP spending by 2030, figures higher than those proposed by Starmer’s administration. Starmer had offered an additional £1.35 billion over four years, aiming for 2.68 percent of GDP defence spending by 2030. Critics, including former armed forces minister Al Carns, dismissed parts of the proposal as insufficient and described some financial maneuvers as misleading.
Constitutional advisers reportedly debated the appropriateness of a departing prime minister authorizing significant spending commitments. Established Whitehall conventions recommend that outgoing leaders avoid enacting major policy changes. Some former senior officials argued that any announcement by Starmer might carry limited weight if Burnham chooses to reverse or amend it upon becoming prime minister.
Despite internal contention, Chancellor Rachel Reeves affirmed confidence that the DIP would be published ahead of the NATO summit and that the investment would be both increased and better allocated. The timing is crucial, as NATO allies prepare to report progress on their pledged defence spending targets amid scrutiny from US President Joe Biden and other member states.
Starmer’s push to finalise the defence plan before his departure illustrates the urgency within the government to demonstrate a strong commitment to national security and fulfil NATO obligations, even as party leadership remains uncertain in the coming weeks.