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Gap between Britain’s defence spend and capability

by Mark Rowe

As Middle East conflict persists and British and European forces are drawn closer to the front line, questions about Britain’s defence capability and ability to respond quickly are becoming urgent, writes Gurpreet Sehmi, pictured, Head of Central Government at the consultancy Public Digital.

Against this backdrop, the UK is looking to increase defence spending, following last year’s Strategic Defence Review (SDR), but we still await the Defence Investment Plan that will set out the funding plans for the SDR. New digital capabilities and organisational reforms are still being announced, whilst concerns about readiness persist. Having worked as both a public servant and a consultant across the Royal Navy, government and UK Defence, I’ve observed a repeating pattern: investment alone does not create capability.

Spending more does not automatically make the Armed Forces ready to deploy or respond at pace. Capability isn’t just about what is bought, it’s about whether an organisation can use its people, systems and information effectively when it matters most.

When we talk about defence reform, people instinctively think about hardware: ships, aircraft and equipment. But the Ministry of Defence is a vast organisation and, like any complex business, if it cannot support itself effectively – structurally, culturally and digitally – it won’t deliver operational advantage, regardless of spending levels. Defence reform too often jumps to technology before fixing the foundations.

It’s relatively easy to procure software, announce new platforms or sign agreements with major vendors. But introducing technology into weak structures rarely builds resilience. The more important question is not “What should we buy?” but “What problem are we actually trying to solve?”

The issues are often basic: fragmented data, limited visibility for decision‑makers, manual workarounds, and knowledge held by individuals rather than embedded in systems. These aren’t dramatic failures, but they directly affect readiness. If the foundations are unstable, additional funding adds complexity rather than strengthening capability. In front-line commands, resilience depends not just on deployment, but on the strength of the systems and teams supporting from HQ, and on data being current, accurate and usable.

A reputable internal service to give military leaders a single, reliable view of readiness and deployment data was developed over the last few years, which demonstrated the strength of teams and systems that do work.  Previously, information was spread across multiple systems and spreadsheets, making it difficult to build a timely picture of which ships and units were genuinely ready to deploy.

This tool shows what is possible when leaders have access to accurate, real‑time data. By bringing operational, personnel and equipment information into one accessible service, leaders can identify gaps, prioritise resources and make decisions with greater speed and confidence. The ability to forecast what is needed to move onto a war footing quickly directly strengthens operational readiness. It’s not perfect, but it’s a stark improvement to some parts of service delivery in MoD.

But technology is not the main constraint. The deeper challenge is structural and human.

Digital transformation is frequently discussed at senior levels, but the practical support needed to sustain it is minimal. People build valuable expertise, often alongside industry partners, yet the system doesn’t consistently help them develop or retain those skills.

The two-year rotation cycle illustrates this challenge. Personnel are typically moved into new roles every couple of years to build broad experience across commands and functions. While that breadth has value and invites curiosity, it often means those who develop specialist expertise in digital systems, data or cyber are reassigned just as they become most effective.

I’ve worked with some of the most talented, creative and dedicated teams across defence; all of whom work tirelessly to get the traction on decision making and delivery, and to retain the skills that they’ve developed in postings. It’s painful to see them lose the traction they’ve worked tirelessly to achieve.

Procurement presents a similar constraint. Processes are slow and geared towards larger suppliers, with innovation struggling to translate into deployed capability. Without deeper structural reform through pivoting larger programme delivery to a service-led approach, increased investment will continue to take too long to reach the front line.

With defence spending potentially rising to 3pc of GDP, the question from industry and the public is straightforward: what is it delivering? Much of the funding is consumed by addressing existing challenges, but if there’s insufficient clarity about what is being fixed, what has changed, and what has improved, confidence will weaken.

Ultimately, Britain’s defence investment will only translate into real capability if transformation focuses on strengthening the organisation: putting reliable data in place, giving people the clarity and authority to act, whilst retaining critical skills.

It’s about time service design, digital, data, and technology must be treated as core operational capabilities and no longer back-office IT support.

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