National Audit Office: Overview of the Ministry of Defence 2024-25

The Ministry of Defence's (MoD's) purpose is to protect the nation by ensuring security and safeguarding the UK's national interests and prosperity. In 2025 the government published the Strategic Defence Review (SDR) which signalled a landmark shift in the UK's deterrence and defence.

The government has also announced the largest sustained increase in defence spending since the end of the Cold War: 2.6% of GDP on defence by 2027 and an ambition to reach 3% in the next Parliament.

The MoD is comprised of four key areas: The Department of State, the Military Strategic Headquarters, the National Armaments Director Group, and the Defence Nuclear Enterprise.

In 2024-25, the MoD spent £52.7 billion on its running costs, up from £51.2 billion in 2023-24. This includes day-to-day resources such as staff costs, maintaining military equipment, and management of the Defence estate. It also includes accounting adjustments that are not cash transactions. These include the effect of non-cash depreciation (reduction in value of an asset due to wear and tear) and impairment (reduction in value of an asset due to an event) of military equipment and property.