GCAP ‘set for £6bn funding boost’

The UK is preparing to inject £6bn into the Global Combat Air Programme (GCAP) - seen as vital for the future of thousands of Lancashire defence workers - according to media reports.

It follows mounting political pressure from Japan, one of the UK’s international partners in the project alongside Italy, the Financial Times has reported.

The newspaper says the funding would allow the three partners to agree a multiyear contract with defence industry players, including BAE Systems, covering design and development.

As reported by Lancashire Business View last week, there have been fears that the £24bn sixth generation stealth fighter project is threatened with the axe to fill a Ministry of Defence £28bn ‘black hole’.

Separate media reports revealed a ‘funding deadline’ at the end of June, with a warning that companies involved in the programme could be forced to redeploy engineers if long-term contracts were not finalised.

BAE Systems executive Herman Claesen was quoted as saying that companies involved in the project would have “no choice” but to contain costs and redeploy people if there was no money flowing, meaning those currently working on GCAP would be reallocated to other projects.

Now, according to the FT, a funding agreement has been reached following Japan’s pressure on the UK government over its commitment to defence spending. Tokyo has stepped up warnings over GCAP’s future in recent weeks.

The newspaper says any GCAP funding deal is expected to be announced as part of a wider defence settlement. However, it quoted sources saying that it still needed Treasury approval.

The Defence Eye news website has reported that a ‘full fat’ multiyear deal is set to be signed next month. It  says that the agreement, which aims to secure multi-year funding, signifies a transition into a fully-fledged international endeavour.

More than 4,000 workers across defence giants BAE Systems, Rolls-Royce and Leonardo are currently working on the project in Britain.

Much of the early work has been taking place at BAE Systems’ Lancashire plants at Warton and Samlesbury.

The design of the UK’s flagship Combat Air Flying Demonstrator – a crucial part of the project - was unveiled last summer.

It was revealed that aircraft’s main structure, wings and tail fins were taking shape using pioneering robotic and digital manufacturing and assembly technologies at Warton and Samlesbury, signifying the advanced stages of its development.

Designed to test a wide range of new technologies, including the integration of stealth compatible features, the Combat Air Flying Demonstrator is a crucial part of the work to develop manufacturing processes and de-risk the GCAP programme.

The demonstrator is expected to fly by the end of 2027 with the GCAP programme targeting a 2035 entry into service.

In February, Lancashire Business View reported union leaders’ warnings that Prime Minister Keir Starmer and his government’s “dither and delay” over military spending was putting Britain’s security and thousands of defence jobs at risk.

Unite, which represents defence workers at BAE Systems plants in Lancashire, issued a damning statement on delays to the publication of The Defence Investment Plan (DIP).

The plan was originally expected to be published alongside the Strategic Defence Review last summer but has been delayed several times.

Speaking last month Unite general secretary Sharon Graham, repeated the call for the plan to be published without further delay.

She said: “Our defence workers should be treated are a strategic national asset and when the much-delayed defence investment plan is finally agreed, the money must be spent in the UK.

“Failing to preserve and protect their skills and experience of these workers would mean throwing away vital know-how for defence projects. At best, this would be an extremely time-consuming and expensive mistake.”

A BAE Systems spokesperson said: “Work continues at pace on the Global Combat Air Programme and the signing of the first international contract is a welcome next step.

"We remain committed to playing our part in delivering this complex and vital military capability and working with all partners to ensure the right foundations are in place.”

 The Ministry of Defence told the FT that the UK remained “committed” to GCAP. “Our focus is on continuing to work closely with Italy and Japan on the next steps towards the full international contract,” it added.