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The United Kingdom has awarded a contract extension worth £708 million ($943 million) to BAE Systems to accelerate the development of next-generation combat air technologies, reinforcing the country’s commitment to maintaining a leading role in future air warfare through the Global Combat Air Program (GCAP).

Announced on July 22 during the Farnborough International Airshow, the investment will support the development of advanced technologies for the Royal Air Force’s Future Combat Air System (FCAS), while also strengthening the UK’s contribution to GCAP, a multinational sixth-generation fighter aircraft program being developed with Japan and Italy.

The contract is expected to support more than 4,500 highly skilled jobs across the UK and benefit a nationwide supply chain of around 600 companies and academic institutions.

Contract Expands Development of Future Combat Air Technologies

Under the agreement, BAE Systems will continue serving as the UK’s lead system integrator for GCAP. The company will develop and integrate a wide range of critical technologies, including advanced software, digital engineering, digital networks and supporting infrastructure.

The work will be carried out in partnership with Team Tempest members Leonardo UK, Rolls-Royce and MBDA UK, alongside the Ministry of Defense and hundreds of suppliers across the country.

We've been awarded £708m in a contract extension to progress the concepting and development of next generation combat air technologies, underpinning the UK's role on the Global Combat Air Programme and allowing us to develop capability beyond the sixth-generation aircraft.

Read… pic.twitter.com/ofZRzh1VQp

— BAE Systems (@BAESystemsplc) July 22, 2026

The project also expands beyond the development of the Tempest sixth-generation fighter aircraft and includes operational analysis and concept development for the UK’s wider Future Combat Air System.

It integrates crewed and uncrewed aircraft, advanced communications networks, artificial intelligence and next-generation precision weapons into a single combat ecosystem.

Officials say these technologies are designed to ensure the Royal Air Force remains capable of addressing future security threats while maintaining operational superiority.

Investment Supports Jobs and British Industry

The Ministry of Defense said the contract will directly support more than 4,500 workers across the UK, with approximately 90% of the jobs located outside London and southeast England.

Around 600 British companies and research institutions form part of the program supply chain, contributing to advanced research, engineering, manufacturing and technology development.

The investment is also expected to strengthen Britain’s defense industrial base while supporting economic growth through high-value manufacturing and innovation. The latest funding will accelerate work on several cutting-edge technologies that will form the foundation of future combat aircraft.

These include artificial intelligence, advanced software, digital engineering, robotics, additive manufacturing, augmented reality, digital twins, open-system architectures and virtual engineering environments.

According to the Ministry of Defense, these digital tools will allow future combat aircraft and supporting systems to be designed, tested and upgraded more quickly and at lower cost than previous generations of military aircraft.

The previous phase of the program expanded the UK’s digital engineering capabilities, developed critical infrastructure and matured key technologies now entering the next stage of development.

Global Combat Air Program

The contract forms part of Britain’s long-term commitment to the Global Combat Air Program, an international partnership between the United Kingdom, Japan and Italy to develop a sixth-generation combat aircraft expected to enter service by 2035.

Alongside the aircraft itself, GCAP aims to create an integrated “system of systems” that combines crewed fighters, autonomous aircraft, advanced sensors, secure digital networks and long-range weapons into a connected battlefield network.

The UK’s work under the new contract will also strengthen national capabilities beyond the multinational program by supporting broader development of the country’s Future Combat Air System.

The announcement follows the publication of the UK’s Defense Investment Plan, which commits $11.6 billion to the Global Combat Air Program over the next four years. Since launching the Future Combat Air System program in 2018, the UK government has invested more than £5 billion ($6.7 billion) in future combat air technologies.

Officials said the latest contract demonstrates the government’s long-term commitment to maintaining sovereign defense capabilities while supporting innovation, skilled employment and industrial competitiveness.

Officials Highlight Strategic Importance

Richard Berthon, Director of Future Combat Air at the Ministry of Defense, said the investment demonstrates Britain’s determination to preserve world-leading combat air capabilities.

“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.”

Defense Secretary Wes Streeting described the contract as a strong endorsement of Britain’s defense industry and workforce. “This is a clear vote of confidence in British industry, and the thousands of highly skilled workers who are helping to keep our country safe,” he said.

Three milestones. One clear direction for the future of UK combat air.

With our Team Tempest partners, we're building the UK's next-generation combat air capability:

🎯 Half the Combat Air Demonstrator's main structure is in final assembly
🎯 Excalibur Flight Test Aircraft is… pic.twitter.com/kjp30fW9HJ

— BAE Systems (@BAESystemsplc) July 22, 2026

“This investment in advanced combat air technology for the UK Armed Forces will strengthen our defense and deterrence and shows our clear commitment to backing British workers with our defense investment, creating jobs and supporting communities across the UK.”

Declan Holland, Managing Director of Future Combat Air Systems at BAE Systems Air, said the contract builds on years of collaboration between industry, government and academia.

“Our contract builds on the strong progress already achieved across the UK’s defense 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.”

Simon Barnes, Group Managing Director at BAE Systems, said the additional investment would help the company continue advancing digital engineering and next-generation combat technologies while ensuring the UK remains at the forefront of future air power innovation.

Tempest’s Progress

The funding extension continues work that began in 2018 under Team Tempest, the UK’s national future combat air initiative that later became a central pillar of GCAP.

Over the past eight years, Team Tempest has developed critical technologies, expanded digital engineering capabilities and established new methods of designing advanced combat aircraft using virtual testing and model-based engineering.

The latest investment ensures those efforts will continue as the UK moves closer to delivering a fully integrated sixth-generation combat air capability while strengthening its defense industry and technological leadership for decades to come.