The Ministry of Defence published its Defence Investment Plan (DIP) on 30 June 2026, setting out how the government intends to spend £298bn on defence over the next four years. Below are five of the most significant points for industry to note.

1. Spending is rising, but the growth is backloaded

Total departmental spending rises from £68.3bn in FY26/27 to £79.1bn in FY29/30, a real terms increase of 27% against 2023/24 levels. NATO-qualifying spend as a share of GDP reaches 2.7% in FY27/28, on a path to 3.5% by 2035. The plan also confirms a £15bn increase in MOD spending power over four years, above what was agreed at the 2025 Spending Review.

2. The nuclear enterprise takes the largest single share

The Defence Nuclear Enterprise accounts for £63.6bn of the four-year total, excluding workforce costs, equivalent to around 20-25% of MOD’s overall budget. This covers the Dreadnought and SSN-A submarine programmes, the Astraea warhead replacement, a new nuclear fuels programme and infrastructure at Clyde, Devonport, Aldermaston and Burghfield.

3. Autonomy and uncrewed systems are a stated near-term priority

Over £5bn is allocated to autonomous systems by 2030, spanning the Hybrid Navy (uncrewed missile, sense and radar platforms), Project ASGARD and Project NYX in the land domain, Collaborative Combat Aircraft, and a new Uncrewed Systems Centre in Swindon. The plan states that at least 10% of the annual Equipment Programme budget, starting in FY26/27, will be spent on novel technologies including AI, autonomy, quantum and directed energy weapons, rising from 12% in FY26/27 to 16% in FY29/30.

4. The plan is explicitly designed to draw in private capital

MOD commits to publishing a Defence Finance and Investment Strategy, has established a Defence Investors’ Advisory Group and is working with Finland, the Netherlands and other NATO allies on a Multilateral Defence Mechanism to aggregate procurement demand. A Defence Investment Unit will sit within the National Armaments Director Group as the department’s centre of expertise for finance and investment across all asset classes and a Defence Investment Summit is planned to showcase opportunities to investors.

5. Support for mid-sized and smaller suppliers is quantified, not just promised

The Defence Office for Small Business Growth aims to increase direct MOD spend with SMEs by 50% by 2028, worth an additional £2.5bn. Five regional Defence Growth Deals (Plymouth, South Yorkshire, Scotland, Wales and Northern Ireland) are backed by £250m over five years, alongside a £182m skills package funding five new Defence Technical Excellence Colleges. The plan also confirms a Segmented Acquisition Model and six Commercial Pathways, launched to reduce time-to-contract across major platforms, modular upgrades and fast-evolving technologies.

Figures are drawn from the Defence Investment Plan (Ministry of Defence, 1 July 2026) and reflect planned rather than committed spend, as set out in the plan’s on notes on scope and status.

If you sit in the defence sector and would like to discuss communications support following the DIP, please contact business@speedcomms.com