Industry Bodies Sound Alarm Over Defence Investment Plan Delay and Spending Shortfall

Homeland June 18, 2026

Prime Minister Rishi Sunak has announced that the UK will increase defence spending to 2.5% by 2030.

Five of the UK’s leading defence trade associations have issued a rare joint statement warning that delays to the Defence Investment Plan (DIP) and a reportedly marginal increase in defence spending are already causing serious damage to businesses across the supply chain.

ADS, Make UK Defence, SMI, techUK and TheCityUK, speaking collectively for the first time on this issue, described the proposed settlement as insufficient in both scale and phasing, and called on the government to publish the DIP in full before the NATO Summit next month.

The practical impact on supply chain businesses is being felt now. The joint statement is direct: delays are “having a crippling impact on business confidence in the sector, with investments being held up, hiring plans put on hold, and in the worst cases, businesses at risk of going bust.” SMEs are identified as particularly exposed, lacking the capital to sustain themselves through prolonged uncertainty while facing rising business costs and a fundamental lack of cashflow.

The associations back the government’s growth agenda and have supported the Strategic Defence Review and Defence Industrial Strategy as positive steps. Their concern is not with the direction but with the failure to follow through: “the sense of urgency recently presented on defence is not being met with tangible action inside certain parts of the UK Government.”

The statement echoes John Healey’s resignation letter directly, warning against forcing the MoD into decisions that reduce force readiness or “make the country less safe.” It also cites the Prime Minister’s own intelligence assessment that a Russian attack on NATO could come as early as 2030 as context for why the current pace of decision-making is inadequate.

The call to action is clear: a meaningful acceleration of defence investment, and a DIP published before the NATO Summit that sets out a credible pathway to meet NATO commitments, with early decisions that give industry the confidence to invest, hire, and deliver.

For supply chain businesses already managing the consequences of delayed programme decisions, this statement represents the loudest collective signal yet that the industry’s patience has limits.

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