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The Times: UK defence budget deficit to hit €28bn over next four years

Prime Minister Starmer 'extremely surprised and unhappy' with forecast

Jan 9, 2026 05:49 93

The Times: UK defence budget deficit to hit €28bn over next four years  - 1

The UK defence budget deficit over the next four years will hit €28bn ($37.6bn), The Times reports, citing sources.

According to them, Chief of the Defence Staff Richard Knighton presented the figures to Prime Minister Keir Starmer at the end of December 2025. The Prime Minister was extremely unhappy with what he heard, as he had not expected such a large financial deficit. Therefore, he ordered a review of the defence spending plan, which should take into account all the necessary details.

The article states that the main reasons for the deficit are inflation, rising military salaries and the cost of maintaining nuclear weapons. It is unclear, however, how the cabinet will find the funds to cover the deficit in the defense budget.

On December 19, The New York Times reported that the United Kingdom is preparing for a potential conflict with Russia on its territory and is developing a “common national approach to deterrence and defense“.