Departmental capital budgets will be cut by a further 1% a year from 2027-28 to 2029-30 to raise £3bn towards the £4.7bn gap in the Defence Investment Plan, the Treasury's Budget 2026 document shows.
In the Commons, the Chancellor, John Healey, had spoken only of "capital reprioritisation across Whitehall". The document bears that out and puts a figure and a timetable on it. The cut covers £3bn of the £4.7bn. The other £1.7bn must come from elsewhere.
The document also warns of tighter settlements ahead. It says: "it is not necessarily the case that all departments will see real terms increases at the next spending review".
That review takes place in 2027, according to the document. This matches the Reuters report that the path to defence spending of 3.5% of GDP by 2035 will be set out at next year's Spending Review.