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Joint procurement and shared stockpiles with European allies could save up to £3.4bn, IPPR finds, easily covering the DIP’s £0.9bn shortfall in 2029/30. However reaching 3% of GDP defence spending would still need about £13bn a year and wider fiscal decisions.
John Healey’s move from defence secretary to chancellor is presented as an opportunity to close the Defence Investment Plan funding gap. IPPR argues the remaining shortfall — around £1 billion a year — can be found without major policy changes while pursuing ‘reindustrialisation through defence’.