Keir Starmer warned of £28bn Royal Navy, Army and RAF funding chasm amid "rising demands" on defence
Sir Keir Starmer has been warned by the UK’s top military chief that the Ministry of Defence (MoD) could face a £28bn funding shortfall in the next four years.
Air Chief Marshal Sir Richard Knighton reportedly told the prime minister that an MoD assessment made last year showed a £28bn shortfall between now and 2030. The Chancellor and Defence Secretary were also at the meeting in the run up to Christmas, as first reported by The Times and The Sun newspapers.
The news is thought to have prompted Sir Keir to order an overhaul of the defence investment plan (Dip), which has been delayed after first being expected in the autumn. The Dip will set out how the strategic defence review is to be delivered.


A government source told national publications is “on track” to fulfil the commitments outlined in the review. Sir Richard took over as Chief of the Defence Staff in September and is responsible for the delivery of the strategic defence review published in June.
Criticism has been rising about the lack of urgency regarding defence spending. Labour’s goal is to raise funding to 2.6 per cent of GDP by 2027, with three per cent by the next parliament.
They also committed to Nato’s pledge of spending five per cent of GDP by 2035 - 3.5 per cent on core defence and 1.5 per cent on national security related matters. But the lack of definitive dates beyond 2027 has drawn criticism, especially amid recent actions from Russia.
A trio of ships were seen sailing in British waters earlier this week, with HMS Mersey being deployed to shadow them. RFA Tideforce and RAF surveillance aircraft supported a US mission to seize the Russian-flagged oil tanker Marinera, also known as Bella 1. Defence secretary John Healey told the House of Commons that responding to Russia’s shadow fleet, that funds its illegal invasion of Ukraine despite sanctions, is a priority.


Speaking in the House of Lords this week, former First Sea Lord Admiral Lord West said: “Wars don’t wait until the nations involved are ready. In an era of ‘might is right’, we need to grasp the nettle, seriously increase our spending today, not in the years to come.”
Lord Stirrup, an independent crossbencher, criticised Treasury minister Lord Livermore for saying that increasing defence spending beyond three per cent of GDP was a matter for the parliament after next stating it was a “wholly irresponsible attitude”.
News of the shortfall, and recent criticism, comes as UK this week pledged to put troops on the ground in Ukraine in the event of a ceasefire. Sir Keir spoke to US President Donald Trump for the second time in as many days on Thursday (January 8) as the two discussed the threat that an “increasingly aggressive” Russia poses in the “High North”.
An MoD spokesperson said: “The UK defence budget is rising to record levels as this Government delivers the biggest boost to defence spending since the Cold War, totalling £270bn this parliament alone. Demands on defence are rising, with growing Russian aggression, increasing operational requirements and preparations for a Ukraine deployment.
“We are working flat out on the Defence Investment Plan, which will fix the outdated, overcommitted, and underfunded defence programme we inherited.”
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