Following the government’s commitment to increase military spending and the publication of the Strategic Defence Review (SDR) in early June, the military industry has been keenly awaiting the release of the government’s Defence Investment Plan (DI… 

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Defence minister Luke Pollard told MPs in June that the DIP will “cover the full scope of the defence programme, from people and operations to equipment and infrastructure”. Time and again ministers have promised that the plan will be unveiled in the autumn and so this now seems likely to be soon after the Budget of 26 November (although such promises are of course routinely broken).

How much?!

UK military spending was £60.2bn in 24/25 (around 2.4% of GDP), up from £42.4bn in 2020/21. In February 2025, the Starmer government committed to further increase military spending raising the budget to 2.5% of GDP by 2027 (estimated at around an extra £6bn per year – roughly the amount cut from the UK’s Aid budget) with ‘an ambition’ to reach 3% by the next parliament. At the NATO summit in June 2025, however, Starmer upped the ante, with a pledge to reach a ‘goal’ of 5% (3.5% on ‘core defence’ (estimated to be an extra £30bn per year) with 1.5% (around £40bn per year) on ‘defence-related areas such as resilience and security’) by 2029. Subsequently the government said it “expected to reach at least 4.1% of GDP in 2027”.

‘Whole of Society’

Importantly, alongside the increase in military spending, the Strategic Defence Review argued that ‘defence’ is now to be seen as a ‘whole of society’ effort and this may well be re-emphasised when DIP is published.

The plan is being billed as enabling the UK to be at ‘warfighting readiness’ and alongside equipment and weapons programmes, the public is being urged to be ”prepared for conflict and ready to volunteer, support the military, and endure challenges”.

And to top this off, the government is deploying the hoary old chestnut that military spending is good for the economy (despite such claims being persistently and thoroughly debunked).

Trailed Plans

While specific spending details remain under wraps, government announcements since the publication of the SDR have indicated some of the broad areas which will receive more funding:

Drones, Drones, Drones. In the Spring Statement, Chancellor Rachel Reeves stated that “a minimum of 10% of the MoD’s equipment budget is to be spent on novel technologies including drones and AI enabled technology.”  Defence Minister Alistair Cairns indicated in July that there would be around £4bn spending on uncrewed systems – ‘Drones, drones and drones‘ as he put it on twitter.

To the ever-expanding list of UK drone development programmes, many of which are seeking funding decisions as part of the DIP, we can add Project Nyx which seeks to pair a new drone with the British Army’s Apache Helicopter.

Perhaps most significantly in this area, publication of the Defence Investment Plan may illuminate UK plans for a ‘loyal wingman’ type drone – now described by the MoD as an Autonomous Collaborative Platform (ACP) - to accompany the UK’s planned new fighter aircraft, Tempest. While some funding has already been allocated to develop smaller Tier 1 and 2 ACP’s, plans for the more strategic and no doubt costlier level Tier 3 drone have been placed on the back burner pending funding decisions. Will the UK go it alone and build a new armed drone (as no doubt BAE Systems hopes) or will it buy Australia’s Ghost Bat or one of the two drones currently competing for the US contract?

Integrated targeting web. Alongside new drones, the UK is developing a ‘digital targeting web’ to link, as MoD-speak puts it,  ‘sensors’, ‘deciders’ and ‘effectors’. In other words commanders supported by AI will be networked with ‘next generation’ drones, satellites and other systems to identify targets to be destroyed by a variety of novel and traditional military systems. The aim is to rapidly speed up the time between target identification and attack. As Drone Wars has reported, several tests of various elements of this system (such as ASGARD) have been tested and it is likely that further funding for this programme will be part of the DIP.

New munition and drone factories.  The government is keen to bolster the UK’s munitions stocks after supplying huge amounts to Ukraine. The MoD accidentally released details of 12 potential sites for new munitions factories to The Ferret in a Freedom of Information mix-up. The government has plans to open 6 new factories at a cost of £6bn,  

While drones are key for these companies, a huge increase in UK spending on military AI systems is also in their sights.

An AI ‘Manhattan Project’ endeavour.  Despite continued and significant concerns about the military use of AI, particularly in ‘the kill chain’, ministers, officials and commanders seem convinced that a rapid integration of AI into all areas of the armed forces is urgent and vital. Just before stepping down as Chief of the Defence Staff in September, Admiral Sir Tony Radakin put his weight behind calls from Helsing co-founder Gundbert Scherf for a “Manhattan-Project for AI defence”.  Arguing such a plan “would not cost the earth” (but putting it at around $90bn!) Scherf suggested four areas to concentrate on: a) masses of AI-enabled defensive drones deployed on NATO’s eastern flank; b) deploying AI-enabled combat drones to dominate airspace; c) large scale deployment of ai-enabled underwater drones/sensors; and finally, d) replacing Europe’s ageing satellites with (you guessed it) ai-enabled surveillance and targeting satellites.

Anduril is also not shy of lobbying in its own interests. Anduril UK CEO Richard Drake told The House, Parliament’s in-house magazine, that Anduril US was “very much happy with the direction [the SDR is] taking” but went on to publicly push to reduce regulation on the use of drones in UK airspace:

“For UK PLC to get better and better and better in drones and autonomous systems, they have to always look at their regulatory rules as well. Companies like ours and other UK companies can design and build these really cool things, but if we can’t test them well enough in the UK, that’s going to be a problem.”

Winners and Losers

While wholesale adoption of Helsing’s plan seems unlikely, there seems little doubt that the new AI-focused military companies will be among the various military companies who will be the lucky beneficiaries of the UK’s DIP.  Meanwhile, the rest of us seem assured of spending cuts and tax rises.