Sir Keir Starmer will pledge to buy more attack submarines and put the military on a war footing as part of a major defence review – but without making any new spending promises.
The lack of extra cash meant the prime minister was coming under fire for empty rhetoric even before the blueprint for the future of the armed forces is released on Monday.
Defence Secretary John Healey was forced to clarify that while he has “no doubt” the government will lift the defence budget to 3% of national income by 2034, he does not actually have a solid commitment from the Treasury, and this remains only an “ambition”.
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‘Britain has lost control of its borders’
Sky News understands that the recommendations in the Strategic Defence Review, which is expected to spell out the importance of rebuilding national defence and resilience, require investment to rise by at least that amount.
Defence insiders say in reality, given the scale of what they see as the threat posed by hostile states such as Russia, funding should come even faster and be higher.
Donald Trump wants Washington’s NATO allies to spend 5% of GDP on their armed forces, while Mark Rutte, the head of the alliance, is pushing for 3.5% by 2032.
“The real story is that Healey didn’t get the money,” one source said.
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A second source said there is a danger of the UK losing its leadership role in NATO if it fails to support any potential new 3.5% GDP spending target.
Unusually, the government released responses from Sir Keir and the defence secretary to the review hours before the country would be given a chance to scrutinise its content.
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New Sky News podcast launches on 10 June – The Wargame simulates an attack by Russia to test UK defences
The document, which is understood to be around 130 to 150 pages, differs from previous reviews as it has been led by external experts rather than being carried out internally.
In a statement, the government said it would commit to “a landmark shift in our deterrence and defence, moving to warfighting readiness to deter threats and strengthen security in the Euro Atlantic area”.
The prime minister will also announce the UK’s plans to buy “up to” 12 new nuclear-powered attack submarines in a partnership with Australia and the US known as AUKUS.
However, the only thing new about this is a bit more clarity on the size of the fleet.
The previous government had already committed to starting to replace the Royal Navy’s Astute-class submarines by the late 2030s with AUKUS boats.
Image: PM Sir Keir Starmer and Defence Secretary John Healey on a nuclear submarine. Pic: Crown Copyright 2025
“Sort of what we already know… repackaged into an announcement,” a defence industry source said.
And the incumbent fleet is not even fully operational yet – almost 30 years after the first order was made.
Britain’s nuclear deterrent – carried by a different type of submarine – will also be an important focus of the review.
The prime minister, for the first time, put a price tag on the cost to develop nuclear warheads for the Trident missiles that will be carried by a new fleet of nuclear-armed submarines, which are also being built.
He said the UK is spending £15bn over this parliament on the effort.
This investment, coupled with the expansion in submarine building, will support 30,000 highly-skilled jobs across the country, according to a Ministry of Defence statement.
“From the supply lines to the front lines, this government is foursquare behind the men and women upholding our nation’s freedom and security,” the prime minister is expected to say.
“National security is the foundation of my Plan for Change, and this plan will ensure Britain is secure at home and strong abroad.
“This Strategic Defence Review will ensure the UK rises to the challenge and our Armed Forces have the equipment they need that keeps us safe at home while driving greater opportunity for our engineers, shipbuilders and technicians of the future.”
James Cartlidge, the shadow defence secretary, criticised ministers for failing to give a firm date to lift defence spending to 3% of national income.
“All of Labour’s Strategic Defence Review promises will be taken with a pinch of salt unless they can show there will actually be enough money to pay for them,” he said.
It was a sentiment echoed by the Liberal Democrats.
“Unless Labour commits to holding cross-party talks on how to reach 3% much more rapidly than the mid-2030s, this announcement risks becoming a damp squib,” said Helen Maguire, the party’s spokesperson on defence.
Prince Harry has denied having a fight with Prince Andrew after it was claimed “punches were thrown” between the pair in 2013.
The allegations appeared in excerpts from a new book on the Duke of York being serialised in the Daily Mail.
It claims a row started after Prince Andrew said something behind Harry’s back, with Andrew “left with a bloody nose” and the pair needing to be broken up.
It also claimed the Duke of York once warned his nephew about marrying Meghan and suggested it wouldn’t last long.
However, a spokesperson for the Duke of Sussex strongly denied the claims.
“I can confirm Prince Harryand Prince Andrew have never had a physical fight, nor did Prince Andrew ever make the comments he is alleged to have made about the Duchess of Sussex to Prince Harry,” a statement said.
They said a legal letter had been sent to the Daily Mail due to “gross inaccuracies, damaging and defamatory remarks” in its reporting.
The book – Entitled: The Rise and Fall of the House of York – is billed as the first joint biography of Prince Andrew and ex-wife Sarah Ferguson.
It’s said to be based on interviews with “over a hundred people who have never spoken before”.
He said his brother once knocked him to the floor amid a confrontation over Meghan’s “rude” and “abrasive” behaviour.
“It all happened so fast. So very fast,” Harry wrote in the book.
“He grabbed me by the collar, ripping my necklace, and he knocked me to the floor. I landed on the dog’s bowl, which cracked under my back, the pieces cutting into me.”
“I lay there for a moment, dazed, then got to my feet and told him to get out,” the prince added.
Harry claimed his brother wanted him to hit him back “but I chose not to”, and that William later returned and apologised.
The Duke Of Sussex has described his relationship with his family as extremely strained after he quit as a working royal and took legal action against the media, and over the removal of his UK police protection.
He claimed earlier this year the King wouldn’t speak to him and there had “been so many disagreements between myself and some of my family”.
Martin Lewis says motorists who were mis-sold car finance are likely to receive “hundreds, not thousands of pounds” – with regulators launching a consultation on a new compensation scheme.
The founder of MoneySavingExpert.com believes it is “very likely” that about 40% of Britons who entered personal contact purchase or hire purchase agreements between 2007 and 2021 will be eligible for payouts.
“Discretionary commission arrangements” saw brokers and dealers charge higher levels of interest so they could receive more commission, without telling consumers.
Image: Pics: PA
Speaking to Sky News Radio’s Faye Rowlands, Lewis said: “Very rarely will it be thousands of pounds unless you have more than one car finance deal.
“So up to about a maximum of £950 per car finance deal where you are due compensation.”
Lewis explained that consumers who believe they may have been affected should check whether they had a discretionary commission arrangement by writing to their car finance company.
However, the personal finance guru warned against using a claims firm.
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“They’re hardly going to do anything for you and you might get the money paid to you automatically anyway, in which case you’re giving them 30% for nothing,” he added.
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Who’s eligible for payout after car finance scandal?
Yesterday, the Financial Conduct Authority said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.
The FCA’s statement added that those affected “should be appropriately compensated in an orderly, consistent and efficient way”.
Lewis told Sky News that the consultation will launch in October – and will take six weeks.
“We expect payouts to come in 2026, assuming this will happen and it’s very likely to happen,” he said.
“As for exactly how will work, it hasn’t decided yet. Firms will have to contact people, although there is an issue about them having destroyed some of the data for older claims.”
He believes claims will either be paid automatically – or affected consumers will need to opt in and apply to get compensation back.
The FCA says you may be affected if you bought a car under a finance scheme, including hire purchase agreements, before 28 January 2021.
Anyone who has already complained does not need to do anything.
The authority added: “Consumers concerned that they were not told about commission, and who think they may have paid too much for the finance, should complain now”.
Its website advises drivers to complain to their finance provider first.
If you’re unhappy with the response, you can then contact the Financial Ombudsman.
Any compensation scheme will be easy to participate in, without drivers needing to use a claims management company or law firm.
The FCA has warned motorists that doing so could end up costing you 30% of any compensation in fees.
The FCA estimates the cost of any scheme – including compensation and administrative costs – to be no lower than £9bn.
But in a video on X, Lewis said that millions of people are likely to be due a share of up to £18bn.
The regulator’s announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.