GCAP ‘set for £6bn funding boost’

By Ged Henderson

19 May 2026

Tempest new

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.

Enjoyed this? Read more from Ged Henderson

Latest news

1

Lancashire Skills Hub signs up to support Sub36 Awards Michele Lawty Jones

Lancashire Skills Hub signs up to support Sub36 Awards

21 Jul 2026

2

The Great North calls for a new partnership between government and northern leaders Andyburnham

The Great North calls for a new partnership between government and northern leaders

21 Jul 2026

3

Lancashire’s Fhunded programme celebrates over £35m of early-stage investment Rory Southworth Fhunded Project Lead

Lancashire’s Fhunded programme celebrates over £35m of early-stage investment

21 Jul 2026

4

Canada joins next-generation fighter jet programme BAE Systems GCAP

Canada joins next-generation fighter jet programme

21 Jul 2026

5

Prolight celebrating three decades in the spotlight Prolight 30 1

Prolight celebrating three decades in the spotlight

21 Jul 2026

Blackburn College (July-Aug 26)
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV130 September/October Magazine Networking Event
Jan/Feb Networking Event - Entrance
Networking
17 Sep 2026

LBV130 September/October Magazine Networking Event

The Beehive Blackburn, Shadsworth Business Park, BB1 2QS

08:30 - 10:30

Built Environment Conference 2026
BEC Listing
Networking
24 Sep 2026

Built Environment Conference 2026

EG On The Move, Waterside Head Office, Blackburn, BB1 2FA

08:30 - 13:00

Sub36 Awards 2026
Awards
16 Oct 2026

Sub36 Awards 2026

Park Hall Hotel & Spa , Chorley

18:00 - 00:00

LBV131 November/December Magazine Networking Event
Jan/ Feb Networking Event - Talking
Networking
19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

Lancashire Business Day 2026
LBD Listing
Networking
27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

Preston Tech Connection Coworking Day at Society1
PTC coworking day FB 900 Square.png.png
LBV Hub Networking
23 Jul 2026

Preston Tech Connection Coworking Day at Society1

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 12:00

The AI Lab: Marketing Multiplier
LBV Hub Roundtables
31 Jul 2026

The AI Lab: Marketing Multiplier

Door4, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:30

Chamber Breakfast Networking – August
Logo.jpg.jpg
LBV Hub Networking
04 Aug 2026

Chamber Breakfast Networking – August

Morecambe Golf Club, Morecambe, LA4 6AJ

08:00 - 10:00

Morecombe Bay Walk
Morecambe-25-web-gallery4.jpg.jpg
LBV Hub Fundraisers
08 Aug 2026

Morecombe Bay Walk

Arnside, Carnforth, LA5 0HD

13:00 - 18:00

The Ultimate Network
Logo.jpg.jpg
LBV Hub Networking
13 Aug 2026

The Ultimate Network

Garner Hotel , Preston, PR5 0UL

16:00 - 18:00

Mind Over Mountain: Brunch at Ivory Tower
mind-over-mountain-complete.jpg.jpg
LBV Hub Fundraisers
11 Sep 2026

Mind Over Mountain: Brunch at Ivory Tower

Ivory Tower, Preston, PR1 2NL

12:30 - 16:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin