In July 2022, Government approved the move to ‘Level of Ambition 2’ (LOA2), as set out in the capability framework devised by the Commission on the Defence Forces. This provides for a rise in the Defence budget to €1.5 billion, in 2022 prices, by 2028, as part of annual Estimates processes.
This level of funding increase would allow for the required substantial transformation and investment in recruitment and equipment that were identified by the Commission. It encompasses both current and capital investment, and is supported by a comprehensive programme of work, currently underway throughout the Department and the Defence Forces, as outlined and prioritised in the Strategic Framework and the Detailed Implementation Plan for the Commission Report.
Capital investment in Defence is primarily directed at providing sufficient military capabilities, across land, air, maritime and cyber domains, to meet specific roles assigned to the Defence Forces. In the main, this investment is for the acquisition of defensive equipment and the construction or upgrade of Defence Forces built infrastructure. The availability of comprehensive, internal capital planning frameworks, in the form of the Equipment Development Plan (EDP) for Defence Forces equipment acquisitions and the Infrastructural Development Plan (IDP) for Defence Forces infrastructural projects, along with the establishment of a joint Civil-Military Capability Development Branch are key enablers within Defence capital planning processes.
There are no capital investment projections for 2030, 2032 or 2035 outlined in the Commission Report. However, following on from the publication of revised multi-annual capital allocations in the National Development Plan (NDP), the Defence capital allocation will rise from its 2024 level of €176 million to €215 million in 2025 and €220 million in 2026. This level of increase represents an increase of €78 million (55%) in capital funding on the corresponding 2022 allocation of €142 million, and will bring the Defence capital allocation to its highest ever level in 2026.
This level of capital investment will ensure that the Defence Forces can continue to undertake the roles assigned by Government, both at home and overseas, while also progressing the transformation of the Defence Forces in line with the Strategic Framework and the objectives and timeframes set out in the Detailed Implementation Plan for the Report of the Commission on the Defence Forces.