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| Defence budget (United Kingdom) | |
|---|---|
| Name | Defence budget (United Kingdom) |
| Country | United Kingdom |
| Year | 2025–26 |
| Total | £xx billion |
| Percent of GDP | x.x% |
| Minister | Prime Minister of the United Kingdom / Secretary of State for Defence (United Kingdom) |
| Responsible agency | Ministry of Defence (United Kingdom) |
Defence budget (United Kingdom) The United Kingdom defence budget finances the Ministry of Defence (United Kingdom), the British Army, the Royal Navy, and the Royal Air Force through appropriations set by the HM Treasury, parliamentary approval in the House of Commons, and direction from the Prime Minister of the United Kingdom. It underwrites equipment programmes with suppliers such as BAE Systems, Rolls‑Royce and Babcock International, funds operations related to commitments like NATO missions, and supports personnel through pay and veterans' benefits administered alongside agencies such as Veterans UK and the NHS.
The defence budget is authorised annually via the Defence Estimates and consolidated in the Consolidated Fund and the Public Expenditure Statistical Analyses (PESA), reflecting allocations to the Ministry of Defence (United Kingdom), capital procurement, and operating costs tied to assets like HMS Queen Elizabeth (R08), Type 26 frigate, and the F-35 Lightning II. Parliamentary scrutiny is exercised by the Defence Select Committee (House of Commons), the Public Accounts Committee (House of Commons), and ministers such as the Chancellor of the Exchequer and Secretary of State for Defence (United Kingdom). Budget decisions interact with policy documents including the SDSR 2015 and the Integrated Review.
Post-World War II settlements such as the Potsdam Conference and the North Atlantic Treaty shaped early Cold War spending that funded deployments alongside the Royal Navy in the Falklands War and the Gulf War (1990–1991). The end of the Cold War and interventions like the Iraq War and War in Afghanistan (2001–2021) prompted force reductions and later re-expansions under reviews like the SDSR 2010 and SDSR 2015. Reforms targeting procurement followed controversies around projects such as the Astute-class submarine programme and the Ark Royal decommissioning, leading to industrial strategies influenced by the UK Defence and Security Industrial Strategy and parliamentary inquiries by the National Audit Office.
Spending divisions include Resource DEL for day-to-day costs, Capital DEL for equipment such as Eurofighter Typhoon and Queen Elizabeth-class carriers, and Annually Managed Expenditure for pensions tied to the Armed Forces Pension Scheme. Allocation models link to force elements—land, sea, air—and to capability programmes like the Trident nuclear deterrent administered with partners including Lockheed Martin and MBDA. Budget baselines reflect commitments to targets such as the NATO guideline of 2% of GDP and are affected by macroeconomic instruments managed by the Office for Budget Responsibility and the Chancellor of the Exchequer.
Procurement processes engage procurement authorities within the Ministry of Defence (United Kingdom) and prime contractors including BAE Systems, Airbus UK, Rolls‑Royce and Thales Group. Policy instruments include Industrial Participation programmes, the Defence and Security Accelerator, and export controls coordinated with the Foreign, Commonwealth and Development Office. High-profile programmes—F-35 Lightning II, Queen Elizabeth-class, Type 26 frigate, Future Combat Air System collaborations—have driven debates on sovereign capability, supply chains, and the Defence Equipment and Support relationship with UK suppliers and allied firms such as General Dynamics and Northrop Grumman.
Personnel costs encompass pay, allowances, housing, and pensions for members of the British Army, Royal Navy, and Royal Air Force, with policy links to the Armed Forces Covenant and delivery partners such as Veterans UK and the Ministry of Defence Police. Veterans support spans healthcare through the NHS (England), mental health services influenced by charities like Combat Stress, and compensation frameworks shaped by legislation including the Armed Forces Act 2006. Recruitment and retention programmes interact with training institutions such as the Royal Military Academy Sandhurst and the Royal Air Force College Cranwell.
Budgetary commitments finance UK participation in NATO operations including deployments to the Baltic States under enhanced forward presence, maritime security in the Gulf of Aden, and air policing in the Baltic Air Policing. The UK supports multinational programmes such as the Combined Joint Expeditionary Force with France and contributes to exercises with partners including United States forces and the European Defence Agency. Financial commitments also back bilateral basing arrangements like those in Falkland Islands and support for UN peacekeeping operations when authorised.
Oversight bodies such as the NAO and the Comptroller and Auditor General audit major programmes and identified cost overruns in projects including Astute-class submarine and F-35 Lightning II integration. Parliamentary inquiries by the Defence Select Committee (House of Commons) and investigations by the Public Accounts Committee (House of Commons) have examined procurement failures, capability gaps, and transparency issues linked to contracting with firms like BAE Systems and Babcock International. Controversies also involve compliance with export licensing overseen alongside the Foreign, Commonwealth and Development Office and legal challenges referencing statutes such as the Armed Forces Act 2006.
Category:Defence economics of the United Kingdom