2 min read - 23 Jul, 2026
BAE Systems secures £708m MOD combat aircraft investment
The Ministry of Defence (MOD) has awarded a contract extension worth £708m to BAE Systems, accelerating the concepting and development of critical sixth-generation sovereign combat air technologies while supporting the UK’s role in the Global Combat Air Programme (GCAP).
The technology includes pioneering dual-use capabilities, from first-in-the-UK digital engineering to artificial intelligence, and advanced manufacturing capabilities, such as augmented reality, additive manufacturing and robotics.
The previous phase of investment delivered significant progress across the UK’s future combat air capability, including the expansion of digital engineering capabilities, development of critical physical infrastructure, and maturation of advanced technologies required for future combat air systems.
BAE Systems has been awarded a £708m contract to continue development of advanced air combat technology for the UK Armed Forces / Picture: BAE Systems
BAE Systems will also develop national capability beyond the core sixth-generation aircraft, known as Tempest in the UK. This involves operational analysis and concept development of the broader Future Combat Air System, including integrating uncrewed air systems, advanced networks and the latest weapon technologies.
Richard Berthon, director for future combat air at the Ministry of Defence, said: “This £708 million investment demonstrates the UK’s continued commitment to maintaining a world-leading combat air capability and a freedom of action which ensures our Armed Forces remain equipped to meet future threats.”
Declan Holland, future combat air systems managing director at BAE Systems, added: “Our contract builds on the strong progress already achieved across the UK’s defence ecosystem, bringing together industry and academic partners to accelerate next-generation technologies. Through this work, we’re delivering tangible outcomes for the Global Combat Air Programme by strengthening UK capability, supporting high-value innovation and contributing to long-term economic growth.”
Across the UK, 4,500 workers will develop cutting-edge defence technologies, including artificial intelligence and advanced software / Picture: BAE Systems
The funding extension continues the substantial progress made by Team Tempest partners, BAE Systems, Leonardo UK, MBDA UK, Rolls-Royce and the MOD, since 2018, with some 4,500 people researching, evaluating and developing a range of future combat air capabilities designed to keep the UK ahead of the threat.
Around 600 companies and academic institutions across the UK form the programme’s supply chain, supporting thousands of skilled jobs and making defence an engine for growth.
This is driving investment across the UK in advanced digital technologies, tools and techniques, including model-based systems engineering, open architectures, digital twins and virtual environments. These approaches will enable the next generation of combat air systems to be delivered more rapidly and cost-effectively than previous programmes.
