UK DIP 2026: UK ‘spends like crazy; on armoured vehicles, plans PrSM procurement

By joining the PrSM programme alongside Australia and the US, the UK will triple the British Army's range to 499 km. (US Army )

Under the Defence Investment Programme (DIP) published on 30 June 2026, the UK plans to transform the British Army from the expeditionary force of the post-Cold War era to a fifth-generation modernised force designed for NATO warfighting, as laid out in the 2025 Strategic Defence Review (SDR).

The UK plans to spend over GBP20 billion (nearly USD26.6 billion) to rapidly multiply the British Army's lethality tenfold through autonomous systems, long range missiles, artificial intelligence (AI), and armoured vehicles, with a new doctrine of fighting by recce-strike at all levels, from the battalion to the corps. The investment will contribute to the UK's commitment of a transformed strategic reserve corps for NATO, the Allied Rapid Reaction Corps (ARRC), made up of the UK 1st and 3rd Divisions as well as Italian and Canadian forces.

Spending spree

Previewing the DIP in a morning briefing covered virtually by Janes on 30 June before the plan was published, a UK Ministry of Defence (MoD) official said, “We're spending like crazy” on the Boxer, Ajax, and Challenger 3. Over the four years covered by the DIP in 2026-30, GBP1.1 billion have been earmarked for Ajax armoured fighting vehicles, the same amount for completing production of the Challenger 3 main battle tank, and GBP2.2 billion for Boxer armoured vehicles.

The four-year DIP foresees spending GBP1.3 billion on close support artillery and GBP590 million on long-range rocket artillery. GBP190 million is planned to be spent on short-range ballistic missiles, tripling the British Army's range by the UK joining the Precision Strike Missile (PrSM) programme alongside Australia and the US.