On 2 June 2025, the Government published the Strategic Defence Review (SDR), the first defence review since 2021. Delivered by three independent reviewers with experience across politics, the armed forces and the wider defence industry, the SDR outlines aims to strengthen national security, prepare for future threats, and stimulate economic growth across the UK.[1]
The SDR set out five principles for UK Defence:[2]
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- ‘NATO First’ – The UK’s role in NATO should be prioritised, but not to the detriment of other alliances or theatres,
- ‘Move to warfighting readiness’ – The Armed Forces should move towards a more lethal ‘integrated force’ with strengthened home defence,
- ‘Engine for growth’ – Defence should drive jobs and prosperity by working with industry,
- ‘UK innovation driven by lessons from Ukraine’ – Defence should harness the latest technologies, including drones, data and digital warfare, to make the Armed Forces more effective,
- ‘Whole-of-society approach’ – Participation in national resilience should be widened among the general public.
In line with the SDR’s findings, the Government announced it would take further immediate actions, funding various projects including:
- £1.5 billion investment in new munitions factories to create 1,800 jobs, [3]
- £1 billion to develop the UK’s battlefield digitisation capabilities, [4]
- £15 billion to expand the UK submarine programme and the AUKUS partnership, [5]
- £1.5 billion contract extension with Qinetiq to modernise defence testing, [6]
- £1.5 billion to upgrade and build new accommodation for service personnel, [7]
- £5 billion to research and development for next-generation defence technologies, [8]
Reaction to the SDR has focussed on money. The SDR itself does not include any costings, and many of the recommendations will require significantly increased spending to deliver. The Government has committed to increasing defence spending to 2.5 per cent of GDP in 2027, and has an ‘ambition’ to increase that figure to 3 per cent in the next Parliament, i.e. by 2034 at the latest. [9] However, this ambition has not been funded by the Treasury.
Speaking in the House of Commons, the Shadow Defence Secretary, James Cartlidge MP, claimed that the Strategic Defence Review is an ‘empty wish list’ because ministers ‘do not have a plan to fund it’.[10] Similarly, the Chair of the Defence Select Committee welcomed the Government’s intentions, but said that the SDR is ‘only as effective as the spending review that will follow this month.’[11] The Liberal Democrat leader, Sir Ed Davey, criticised the Government for ‘showing a concerning lack of urgency on reaching 3%’.[12]
Many businesses and trade unions in the defence industry welcomed the SDR, including BAE Systems, which noted the Government’s commitment to ‘the largest sustained increase in defence spending since the Cold War’[13] and Prospect, which said the Review ‘rightly puts UK industry and defence jobs at the heart of Britain’s security’.[14]
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[1] Ministry of Defence, The Strategic Defence Review 2025 – Making Britain Safer: secure at home, strong abroad, 2 June 2025, Link
[2] Ibid, p.4
[3] Ministry of Defence, New munitions factories and long-range weapons to back nearly 2000 jobs under Strategic Defence Review, 1 June 2025, Link
[4] Ministry of Defence, UK to deliver pioneering battlefield system and bolster cyber warfare capabilities under Strategic Defence Review, 29 May 2025, Link
[5] Ministry of Defence, UK to expand submarine programme in response to Strategic Defence Review, 1 June 2025, Link
[6] Ministry of Defence, Major £1.5 billion defence contract with British firm ensures world-class equipment testing for UK forces and secures 1,200 jobs, 22 May 2025, Link
[7] Ministry of Defence, Homes fit for heroes with extra £1.5 billion for forces housing through upcoming Strategic Defence Review, 31 May 2025, Link
[8] Ministry of Defence, Major £5 billion technology investment accelerates UK defence innovation in a European first, 2 June 2025, Link
[9] Politico, UK and EU ready for drawn-out battle on defense deal, 26 May 2025, link
[10] James Cartlidge, Hansard, 2 June 2025, Col.53, link
[11] Tanmanjeet Singh Dhesi, Hansard, 2 June 2025, Col.56, link
[12] BBC News, New era of threat demands new era of UK defence, minister says after spending plans unveiled, 2 June 2025, link
[13] BAE Systems, Response to the UK Strategic Defence Review, 2 June 2025, link
[14] Prospect, Strategic Defence Review: Industry and jobs at the heart of Britain’s security, 2 June 2025, link
