The UK's ambitious plans to expand and modernise its armed forces are at risk due to insufficient funding, the country's most senior military officer has warned. Despite the government's pledge to increase defence spending, the allocated budget will not cover the full scope of reforms outlined in a major strategic review.
Budget Rise Insufficient for Strategic Ambitions
Appearing before the Defence Select Committee on Monday 12 January 2026, Chief of the Defence Staff Sir Richard Knighton delivered a stark assessment. He stated that the Labour government's commitment to raise defence expenditure to 2.5 per cent of GDP from next year would still leave a significant funding gap.
"We can't do everything we would want to do as quickly as we would want to do it within the budget that is set," Sir Richard told MPs. He emphasised that this shortfall would force ministers to make "difficult trade-offs" regarding military capabilities and procurement timelines.
SDR Proposals and a Heated Downing Street Meeting
The funding constraints directly impact the implementation of last year's flagship Strategic Defence Review (SDR). When pressed on whether the SDR's proposals could be enacted without cuts elsewhere in government, Sir Richard was unequivocal. "If we wanted to do everything that's currently in the programme and everything that's in the SDR with the budget we have, then the answer is no," he said.
The military chief also appeared to confirm reports of a tense meeting between senior defence figures and Prime Minister Keir Starmer in December. While he acknowledged the discussion covered the delayed defence investment strategy, he refused to divulge details, citing the classified nature of the talks. He dismissed media speculation of a specific £28bn spending gap but stressed, "There is no point having a defence investment plan that can't be delivered or is unaffordable."
Capability Concerns and Political Pressure
In some of his most alarming remarks, Sir Richard delivered a damning verdict on the current state of the UK's military readiness, stating the armed forces were not prepared for a 'full-scale conflict'. This admission raises serious questions about the nation's defensive posture amid growing global instability.
The reported budget shortfall intensifies pressure on Prime Minister Starmer and Chancellor Rachel Reeves. They must now navigate limiting departmental expenditure to meet defence ambitions or consider altering fiscal rules to permit more borrowing.
Labour MP and defence committee chair Tan Dhesi criticised the government's approach, suggesting the UK was "trundling along rather than realising the urgency of the moment." The delay and lack of detail on the defence investment strategy are also sparking concern across the defence industry, a sector the government has identified as a key growth area.
