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UK's defence plans are inadequate, deter investors, says former military chief

Published by Global Banking & Finance Review

Posted on June 12, 2026

3 min read

· Last updated: June 12, 2026

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UK Defence Funding Criticised as Inadequate, Investors Deterred Says Former Chief

Defence Spending Row and Impact on Investment

By Iain Withers

LONDON, June 12 (Reuters) - Britain's underfunded public defence plans are deterring private investors and driving contractors overseas, a former military chief has told Reuters, amid a row over military spending that led the defence minister to quit on Thursday.

Resignation of Defence Minister

John Healey resigned after a months-long dispute over a long-awaited public defence investment plan, piling further pressure on Prime Minister Keir Starmer ahead of a likely leadership challenge.

Concerns Raised by Military Leaders

General Richard Barrons, former head of the Joint Forces Command and an author of a defence review in 2025 that was supposed to inspire the spending plan, told Reuters the investment levels outlined would not keep Britain safe.

Barrons, who also co-chairs the finance industry lobby group TheCityUK's Defence and Resilience Group, said the long-running uncertainty had also driven some defence firms to move operations overseas, while others had gone bust.

Contractors Struggling Amid Uncertainty

"We required the defence investment plan to be out in September last year... Then the gap appeared, and they've (contractors) struggled," Barrons said.

"They absolutely aren't going to do what they expected to do, which is to build factories in the UK to service this demand, because the demand isn't there... What they found is there's no funding from government. There's no 'buy'. There's no prospect of a 'buy'."

Government Promises and Spending Targets

Starmer has promised the largest sustained increase in defence spending since the Cold War, aiming to lift it to 3% of national output in the next parliament. But Healey said in his resignation letter the plan he had seen would increase defence spending to only 2.68% in 2030, when it will already reach 2.6% next year.

"They've been cutting for 35 years. So there isn't anything left. It's not as if they're starting from a good place. They're starting from a terrible place," Barrons added.

'Cavalry Is No Longer Coming': Strategic Concerns

The retired Army general co-authored a government-backed defence review last year which recommended accelerated spending for modern warfare, citing threats from Russia, nuclear risks and cyberattacks.

Changing Global Security Landscape

Barrons said Britain needed to significantly step up its defence investment in response to President Donald Trump shaking up the world order.

"That idea that the Americans will save us has been blown out of the water by America's own defence strategy. The cavalry is no longer coming."

(Reporting by Iain Withers, Editing by John O'Donnell and Gareth Jones)

Key Takeaways

  • Former General Richard Barrons warns decades of cuts leave UK starting from a weakened defence baseline and says the DIP’s low projected peak of 2.68% GDP by 2030 won’t ensure safety, deterring investment and industrial expansion (lemonde.fr).
  • Healey’s resignation underscores friction between the MoD and Treasury—alleging the Treasury won’t commit sufficient funds and Starmer won’t override—delaying the plan and prompting private-sector retreat (apnews.com).
  • Starmer has pledged to raise defence spending to 2.5% of GDP by 2027 and 3% or more later, but critics say this acceleration lags behind the urgency posed by evolving threats, with industrial consequences already unfolding (lemonde.fr)

References

Frequently Asked Questions

How are UK defence plans impacting private investors?
Underfunded UK defence plans are deterring private investors and causing contractors to move operations overseas.
Why did Defence Minister John Healey resign?
John Healey resigned following a dispute over a delayed public defence investment plan and concerns over insufficient funding.
What is the current target for UK defence spending?
The current plan aims to raise defence spending to 2.68% of national output by 2030, short of the government's promised 3%.
How are defence contractors responding to funding uncertainty?
Many defence contractors are struggling, choosing not to invest in UK operations or moving abroad due to insufficient government funding.
What global factors are influencing UK defence strategy?
Rising threats such as Russia, nuclear risks, cyberattacks, and uncertainty around US military support are shaping Britain’s defence needs.

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