The Defence Investment Plan (DIP) is Government policy. The DIP is a Government document which was laid before Parliament on 30 June 2026 and summarises the major investment choices the Government has made for UK Defence.

The Defence Investment Plan (DIP) is Government policy. The DIP is a Government document which was laid before Parliament on 30 June 2026 and summarises the major investment choices the Government has made for UK Defence.

The government recognises the vital contribution that the UK defence sector makes to national security and has been clear that investing in defence can be consistent with ethical investing and environmental, social and governance principles.

Last year the government laid secondary legislation to bring the provision of Environmental, Social and Governance ratings into scope of the FCA’s rule making powers. This will allow provide greater transparency around ESG ratings methodologies, support greater investor awareness – including for opportunities relating to defence companies.

The upcoming Defence Finance and Investment Strategy will look at how barriers to investment in defence can be removed while making the sector more attractive for private investment, including venture capital, private equity and pension funds.

The Defence Investment Plan allocates a further £15 billion to defence spending over the next four years, funded by reprioritising public spending, with £10.3 billion already identified and a further £4.7 billion to be confirmed at Budget 2026 in a fair and balanced way.

A Defence Investment Plan Funding Explainer can be found on the government website.

The Defence Investment Plan allocates a further £15 billion to defence spending over the next four years, funded by reprioritising public spending, with £10.3 billion already identified and a further £4.7 billion to be confirmed at Budget 2026 in a fair and balanced way. This brings total defence spending to almost £300 billion over the next four years and by 2027-28, the UK will spend 2.7% of Gross Domestic Product (GDP) on core NATO defence spending.

The Government has committed to increasing defence spending to 3% of GDP in the next Parliament, with funding and plans to be set out in due course.

Defence will deliver £10.7 billion of efficiencies and savings over the Parliament, including through a reshaped civilian workforce, accelerated use of AI, £1 billion of savings from reduced reliance on consultancies, and rationalisation of the MOD estate. This will be underpinned by a £500m Transformation Fund to deliver productivity improving investments in AI and workforce transformation

The plan will be subject to an annual update to Parliament before summer recess, audited by the NAO, with the first update due by July 2027.

A further breakdown of the Defence Reform and Efficiency Plan can be found on page 73 of the Defence Investment Plan, available on the government website.

The Government is committed to the implementation of the Defence Investmeny Plan (DIP).

The DIP implements our ‘NATO First’ approach, placing NATO requirements and interoperability at the heart of UK capability planning. The decisions we have taken will increase the UK’s readiness for the future fight, whilst sustaining our contribution to NATO operations and deterrence activity.

This Government has ended the underfunding and hollowing out of our Armed Forces that we inherited from the last administration.

Backed by £298 billion of investment over the next four years, the Defence Investment Plan will deliver a step change in capability, transforming our Armed Forces and realising the vision set out in the 2025 Strategic Defence Review.

We have not waited for the publication of the Defence Investment Plan to take action. Since July 2024, we have awarded more than 1,400 defence contracts, with 94% of their total value going to UK-based businesses, strengthening our defence industrial base and supporting jobs and growth across the country. Last year alone, we spent more than £31 billion with UK industry – an above inflation increase in spending.

The UK MOD has an established policy for addressing Intellectual Property (IP), and all MOD projects are expected to set out a clear IP Strategy to ensure that IP is adequately protected, whilst securing maximum impact for our armed forces and value for money for the taxpayer.

The MOD will apply this policy to AI projects in the following ways:

1. Where AI technology is developed in-house by MOD research establishments, the IP in that technology will be owned by MOD and will be appropriately protected. Subject to any national security constraints, dual-use technology will be considered for exploitation in the wider economy, including through engagement with MOD’s wholly owned technology transfer company Ploughshare.

2. Where AI technology is developed by contractors on MOD’s behalf, our general policy is to leave the ownership of that technology with the contractors concerned, as they are best placed to pursue the commercial exploitation of that technology in other fields. MOD will take appropriate user rights in that technology to ensure that it can be fully exploited by our armed forces, and, subject to national security concerns, will encourage Industry to further exploit dual-use technology with other customers for the benefit of the wider economy.

Taskforce RAID is taking steps to deliver advantage in denied and degraded environments by improving our understanding of how adversaries operate in the electromagnetic environment, and by strengthening the UK’s ability to counter that activity. This work will support a real-time understanding of the electromagnetic environment, drawing on information from multiple sources to help deliver operational effect at a time and place of the UK’s choosing.