New £708m investment in the UK's next-generation combat air capabilities

Published
2026-07-22T09:34:38.571+02:00 22 July 2026
Business Air
Location United Kingdom
The Ministry of Defence (MoD) has awarded a contract extension worth £708 million to BAE Systems to progress the concepting and development of critical sixth-generation sovereign combat air technologies underpinning the UK’s role in the Global Combat Air Programme (GCAP).
GCAP System of systems

Under the contract, BAE Systems, as the UK’s lead system integrator on GCAP, will deliver and integrate UK technology and develop capability, including software, digital networks, digital engineering and physical infrastructure, working with Team Tempest industry partners and the wider supply chain.

The Company 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.

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.
Richard Berthon
Director Future Combat Air, Ministry of Defence
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.
Declan Holland
Future Combat Air Systems Managing Director, BAE Systems Air

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. 

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.

 

Ref: 085/2026

Get in touch
Rachael Gordon

Strategic & External Communications Director

Air Sector

BAE Systems