The UK must commit nearly £68 billion to overhaul its military capabilities in response to emerging threats, a sweeping Strategic Defence Review (SDR) released Monday has concluded. The findings intensify pressure on Prime Minister Keir Starmer’s government to accelerate defense modernization amid global instability.

Embracing AI and Digital Warfighting

The SDR envisions a transformation of the British armed forces into a digitally networked, AI-enabled fighting force, emphasizing drones, autonomous systems, and precision firepower. General Sir Richard Barrons, co-author of the report, called it “the most profound change to Britain’s armed forces in 150 years.”

The review cites lessons from Ukraine’s war with Russia, urging the UK to adopt a hybrid warfare approach, combining traditional capabilities with digital assets to face peer-level adversaries.

Big-Ticket Defense Investments

Among 62 recommendations—all accepted by the government—the SDR proposes:

• £15bn for new nuclear warheads.
• Up to 12 new attack submarines under the AUKUS partnership.
• 27 additional F-35B stealth fighters (£100mn each).
• A £10–12bn investment in the Global Combat Aircraft Programme with Italy and Japan.
• £1bn for a digital targeting platform and the formation of a national cyber/electronic warfare command

Despite ongoing commitments, the government declined to give a timeline for meeting its 3% of GDP defense spending target. Starmer reiterated a near-term goal of reaching 2.5% by 2027, which would require around £6bn in extra annual funding.

Army Size Holds, Firepower to Rise

While the size of the British Army will remain capped at 73,000 personnel, the review claims a “tenfold increase in lethality” is possible through enhanced surveillance, autonomy, and precision-guided systems. It notes that key equipment—including Challenger 2 tanks and AS90 artillery—was donated to Ukraine and must be replaced.

Fiscal Trade-Offs Loom

The Institute for Fiscal Studies warned that ramping up military spending to 2.5% of GDP by 2027—and potentially 3% by 2030—could force cuts or stagnation in other public investment sectors. An additional £17bn would be needed by 2030 to meet the 3% target, raising questions about political will and economic feasibility.