Committee publication · Estimate memoranda · 29 April 2026

Ministry of Defence Main Estimate Memorandum 2026-27

From: Defence Committee

Summary

The Ministry of Defence's Main Estimate for 2026-27 requests £65.1 billion in total spending, comprising £39.6 billion in Resource Departmental Expenditure Limit (day-to-day running costs), £25.5 billion in Capital DEL (equipment and infrastructure investment), and £16.4 billion in Annually Managed Expenditure. Spending plans align with the Strategic Defence Review 2025 and Spending Review 2025 settlement, with notable increases in capital investment for the Defence Nuclear Enterprise and Single Use Military Equipment.

Key findings

  • Total Main Estimate of £65.1bn spans Resource DEL (£39.6bn, +1.3% vs prior year), Capital DEL (£25.5bn, +10.4%), and AME (£16.4bn, -37.2% from revised accounting treatment of depreciation).
  • Service personnel costs increase by £1,129m (8.8%) to £13.9bn, reflecting military recruitment and retention pressures.
  • Defence Nuclear Enterprise capital investment rises 24.7% to £11.2bn to support delivery of UK nuclear deterrent and long-term safety-critical programmes.
  • Operations and Peacekeeping allocation of £3.7bn supports Eastern Europe response (including £3bn additional Ukraine-related funding) and Broader Middle East deployments.
  • Research & Development spending increases 5.7% to £3.6bn (Capital DEL component), reflecting Strategic Defence Review priorities on innovation and emerging technologies.

Tone

Procedural

Topics

public-financedefence-spendingnuclear-capabilitymilitary-operationsprocurement-reform

Key actors

Ministry of Defence, HM Treasury, National Security Council, Strategic Defence Review 2025, Government Major Projects Portfolio, National Infrastructure and Service Transformation Authority, Defence Nuclear Enterprise, Jeremy Pocklington (Permanent Secretary)

Notable line

The Department's Expenditure Limit (DEL) (Resource and Capital) for 202 6- 2 7 is £6 5 .1Bn (including net budget cover transfers to Other Government Departments (OGDs) in 202 6- …

Key Quotes

The Department's Expenditure Limit (DEL) (Resource and Capital) for 202 6- 2 7 is £6 5 .1Bn (including net budget cover transfers to Other Government Departments (OGDs) in 202 6- 2 7 .
Ministry of Defence (Memorandum overview) · Statement of total Main Estimate budget sought
NATO - first approach that strengthens the UK's leadership in European security, underpinned by enhanced nuclear, technological and modernised conventional capabilities.
Ministry of Defence (Strategic ambitions) · First objective from Strategic Defence Review 2025
Treasury has given Defence a further £3bn to fund Ukraine related activity including a mixture of rapid procurement, training, specific operational contributions and other activities.
Ministry of Defence (Operations funding explanation) · Additional funding for Eastern Europe operations
The increase in 2026 – 27 reflects planned investment as major programmes progress and does not represent a change in policy.
Ministry of Defence (Nuclear Enterprise justification) · Explaining 17.9% increase in Defence Nuclear Enterprise ring-fenced budget
The information in this Estimates Memorandum has been approved by myself as Departmental Accounting Officer.
Jeremy Pocklington (Accounting Officer approval) · Final certification of estimate accuracy and compliance
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