Recommendation 9

The Defence Nuclear Enterprise (DNE) has a ring-fenced budget comprising the Defence Nuclear Organisation, including the Submarine Delivery Agency and the Atomic Weapons Establishment, and the nuclear-related costs of parts of the Military Strategic Headquarters, particularly the Royal Navy.21 In 2024–25, the Department spent £10.9 billion on the DNE, which was 18% of the defence budget. The Department said it was on course to spend about 20% of its budget on the DNE in 2025–26. While the 10-year forecast depends on the DIP, the Department said that the proportion spent on the DNE would continue to increase in coming years to between about 20% and 25% of its overall budget.22 With the Government aiming to raise defence spending to 3.5% of Gross Domestic Product by 2035, this means that the Department is planning for the DNE to account for a larger proportion of an increasing defence budget.23