New UK Defence Secretary Dan Jarvis has secured an extra £1.5bn for the long-delayed defence investment plan, with most of it earmarked for drones to deter Russia and Iran. This comes after predecessor John Healey resigned over an £18bn funding gap, raising questions about Britain's NATO commitments - though NATO chief Mark Rutte told the Guardian he believes the UK will honour them.

Two sources said the deficit was reduced by £15bn after Jarvis successfully persuaded Chancellor Rachel Reeves to give the Ministry of Defence slightly more than the £13.5bn promised to Healey, who quit in protest. The cash allowed Jarvis to increase drone spending from £4bn to £5bn over four years, part of a deal PM Keir Starmer was desperate to conclude before leaving office.

Some extra money came from asking other departments to cut at least 1% from their capital budgets in one of the most acrimonious Whitehall rows in recent memory. Allies of Jarvis said he wanted to “look people in the eye” when the plan was published, while Reeves reportedly found him easier to deal with than Healey, who had become frustrated in his final weeks. Unlike Healey, Jarvis negotiated directly with Reeves rather than going through the PM.

Royal Marine commandos will get additional uncrewed speedboats from Kraken Technology in Fareham, Hampshire, to be deployed in the Strait of Hormuz for peacekeeping, detecting hostile drones - assuming a durable peace agreement between the US and Iran.

Starmer will unveil the plan at a defence firm Tuesday, justifying it as creating jobs and strengthening security. The outgoing PM says it will “help drive growth across the UK.” Likely next PM Andy Burnham echoed this, saying future UK procurement will help “British-based suppliers become more stable and competitive.”

But former service chiefs warn the UK isn't committing enough. Ex-armed forces head Tony Radakin urged Burnham to introduce a “Moscow test,” asking how Kremlin would perceive UK defence decisions. Starmer committed to 3.5% of GDP on defence by 2035, up from projected 2.6% in 2027. Healey wanted 3% by 2030, but Starmer offered only 2.68%.

Rutte said he's confident UK will meet commitments eventually, though not “in one big step.” He noted Burnham would likely see value in boosting defence spending by nearly £30bn a year, as “defence spending does two things: keep the country safe and create jobs.”

The Royal Navy will also build six “hybrid” air defence frigates to replace Type 45 destroyers in the mid-2030s, capable of coordinating with air, sea, and underwater drones.