£4.6bn fighter jet contract boosts BAE Systems' Lancashire programme

By Rob Kelly

06 Jul 2026

GCAP funding

A £4.6bn contract to support the next stage in the development of the Global Combat Air Programme's (GCAP) next-generation fighter aircraft has been announced by the Ministry of Defence, with the programme continuing to support thousands of skilled jobs across the UK, including at BAE Systems' Lancashire sites.

The contract has been awarded to Edgewing, the joint venture bringing together BAE Systems in the UK, Leonardo in Italy and Japan Aircraft Industrial Enhancement Co Ltd, to advance the next stage of the sixth-generation combat aircraft, which is targeted to enter service from 2035.

The announcement follows confirmation in the Defence Investment Plan that the UK will invest £8.6bn in GCAP over the next four years.

Minister for Defence Readiness and Industry Luke Pollard MP said: “The Global Combat Air Programme will give our pilots a cutting-edge stealth fighter jet. Signing this £4.6bn contract alongside Italy and Japan is a major step forward towards delivery.

“This milestone strengthens our partnership with international allies, supports thousands of highly skilled jobs across the UK, and will give the RAF the tools they need to keep the UK safe, all backed by an £8.6bn commitment in the Defence Investment Plan.”

BAE Systems employs more than 10,000 people across its Warton and Samlesbury sites in Lancashire. Eurofighter Typhoon aircraft are manufactured at Samlesbury, while engineering and flight testing are carried out at Warton.

The GCAP fighter jet will operate alongside Typhoon, F-35 and autonomous systems as part of a next-generation Royal Air Force.

The aircraft will make use of digital engineering, artificial intelligence and advanced manufacturing technologies. The programme has already delivered advances in UK digital engineering and manufacturing, including the use of AI, robotics, augmented reality and additive manufacturing to accelerate design, testing and production.

The contract, funded jointly by the UK, Italy and Japan, has been awarded through the GCAP Agency to Edgewing and will support the next stage of the aircraft's design by establishing key requirements and progressing testing work.

GCAP is a key part of the UK's future combat air system and supports a supply chain of around 600 organisations. The programme is intended to strengthen the UK's sovereign industrial capability in areas including digital engineering, advanced manufacturing, propulsion, sensors and data systems.

The Defence Investment Plan also committed more than £1.1bn to upgrade and sustain the RAF's Typhoon fleet into the 2040s, £2.2bn for additional F-35 aircraft and £300m to begin developing a new UK autonomous combat aircraft.

A BAE Systems spokesperson said: “The announcement of a new Global Combat Air Programme (GCAP) contract marks an important step forward for this strategically vital programme.

“We also welcome the government's strong commitment to GCAP in the Defence Investment Plan, which reflects its criticality as part of the UK's sovereign combat air capability for the long term.

“GCAP is built on long-term industrial partnerships across the UK together with our international partners in Italy and Japan, bringing together world-class expertise to deliver next-generation air power.

“BAE Systems continues to play a leading role in this programme, coordinating the UK industrial base and working closely with partners to deliver this critical capability for the future.”

 

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