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Defence Secretary faces questions on £4.7bn funding gap left to Andy Burnham

The Treasury said two-thirds of the £15 billion rise has been identified, leaving the rest to be confirmed at Budget 2026.

  • Prime Minister Sir Keir Starmer announced £15 billion for the Defence Investment Plan on Wednesday, though Chancellor Rachel Reeves revealed that £4.7 billion of the funding remains unconfirmed until Budget 2026.
  • Defence Secretary Dan Jarvis succeeded John Healey this month after his resignation over funding disputes and is refocusing the plan to prioritize drone warfare, earmarking £5 billion for the technology.
  • To raise the identified £10.3 billion, the Treasury plans to sell state assets and cut lower-priority projects, including possible cancellation of the A38 Derby Junctions and A46 Newark Bypass schemes.
  • Reports indicate Andy Burnham, Starmer's anticipated successor, was not briefed on the need to find the £4.7 billion funding gap in his first budget, raising transparency concerns.
  • The government committed to raising defence spending to 3% of GDP by the next parliament and 3.5% by 2035, though both targets depend on future economic decisions by a different administration.
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ITV broke the news in London, United Kingdom on Tuesday, June 30, 2026.
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