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Rachel Reeves has revealed defence chiefs will be given an extra £3 billion but dodged calls to increase spending to 2.5% of GDP.
The Chancellor insisted there is “no more important job for Government” and confirmed the funding boost amid fears over whether the military could win a war.
But she conceded “we will set a path to spending 2.5% of GDP on defence at a future fiscal event”.
Failing to commit to the figure could lead to cuts in troop numbers and equipment, experts fear.
And it will also hamper attempts to replenish Britain’s depleted ammunition stocks.
Chancellor Rachel Reeves said: “There is no more important job for government than to keep our country safe, and we are conducting a Strategic Defence Review to be published next year. And as set out in our manifesto, we will set a path to spending 2.5% of GDP on defence at a future fiscal event.
“Today, I am announcing a total increase to the Ministry of Defence’s Budget of £2.9bn next year ensuring the UK comfortably exceeds our NATO commitments and providing guaranteed military support to Ukraine of £3bn per year, for as long as it takes.”
Under the previous Conservative government, troop numbers were cut to their smallest size since the Napoleonic era as they reduced the British Army by 10,000 to 72,500.
Fewer than half of the Royal Navy’s escort vessels – Type 45 Destroyers and Type 23 Frigates – are currently deployed or immediately deployable.
Only two of out six Type 45 destroyers – HMS Duncan and HMS Dauntless – are currently active, according to the Defence Journal.
Five out of the nine Type 23 frigates are on operations. Both classes of ship are due to be replaced with Type 31 and 26 counterparts.
The Defence Journal said Type 45 availability has increased by 17 per cent, with Type 23 rising by 26 per cent.
The House of Lords international relations and defence committee warned civilians must be ready to fight because Britain’s military is too small.
Peers warned Britain’s military “lack the mass, resilience, and internal coherence necessary to maintain a deterrent effect and respond effectively to prolonged and high-intensity warfare”.
The report said all evidence it had heard “points to the current size of the British Army being inadequate” and questioned “whether the British Army is prepared to meet the growing threat posed by Russia to European security”.
Labour has stressed the Government will increase defence spending to 2.5% of GDP.
But it has refused to set out a timetable, prompting concern Britain’s Armed Forces will not have the firepower it needs to defend the nation.
Defence ministers are understood to have been concerned by the state of the armed forces when they entered government. Several of them said the Ministry of Defence was in a worse state than they had feared.
Speaking after more than 100 days in post, Healey told the Politico podcast Power Play: “The UK, in keeping with many other nations, has essentially become very skilled and ready to conduct military operations. What we’ve not been ready to do is to fight. Unless we are ready to fight we are not in shape to deter.”