Healey resignation sparks new fears over GCAP future

Defence secretary John Healey’s bombshell resignation over the Defence Investment Plan (DIP) has raised new questions over the future of the Global Combat Air Programme (GCAP).

It follows a warning from one of his predecessors that the £24bn sixth generation stealth jet project - seen as vital for the future of thousands of Lancashire defence workers - is in jeopardy.

In a letter to the Prime Minister, Healey said the UK’s defence investment plan – which still has to be published – “falls well short of what is required for defence and the country at this dangerous time”.

His resignation was followed by Armed Forces minister Al Carns quitting Keir Starmer’s government. He said he could not “in good conscience stand at the dispatch box and defend a level of investment I know to be inadequate to the task”.

Reports have suggested the government is set to announce a £13.5bn funding increase for the Ministry of Defence (MoD) over the next four years, less than the extra £28bn requested by the department.

In his resignation letter, Healey expressed concern that the long-overdue DIP financial settlement, was “backloaded” when the “pressure of operations and imperative to speed up readiness to fight is in the first two years”.

In his response, the Prime Minister insisted the DIP would provide “the resources our military needs to keep us safe and the clarity the British defence industry needs to plan”.

Meanwhile, former Conservative defence secretary Ben Wallace, who represented Wyre and Preston North, has raised more fears over GCAP, claiming the UK government secretly wants to bail out of the project.

He said: “It has been a consistent block by the Treasury that the MoD can have AUKUS subs or GCAP or major reductions in Army. But they can’t have all three.

“We are about to witness a classic fudge that will lead to deep hollowing out. The government is preparing to push GCAP to the right and string it out with incremental work and no clear guarantees to commit to it.

“They will be hoping that Japan (who cannot tolerate an extended time line) will pull out and blame can be avoided. 

"The authors of the Strategic Defence and Security Review were clear on the funding levels needed. £16/18bn over four years won’t cut it.”

The failure to publish the DIP has created fears over GCAP, a tri-nation initiative involving Japan and Italy. According to media reports officials in Japan are growing impatient with the UK over funding delays.

Japan’s prime minister Sanae Takaichi is set to meet with Keir Starmer this weekend, with media commentators suggesting the British PM will have to reassure his counterpart that the UK remains a reliable partner.

France and Germany have now scrapped their sixth-generation Future Combat Air System (FCAS) programme, adding to the pressure on GCAP to succeed.

The UK government’s £686m bridge funding for GCAP expires at the end of this month. 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.

The Unite union, which represents defence workers at BAE Systems’ plants in Lancashire, says the defence secretary’s resignation has “exposed” how both the ongoing delay of the defence investment plan (DIP), and its underfunding, is risking UK jobs and undermining national security.

The union says it is aware of a “large number of defence contracts” which are waiting to be signed and are unable to proceed because of the delay to the DIP.

In a statement it said: “It is feared any further delay, or the underfunding of the plan will result in the loss of skilled, well-paid jobs.

 “The UK’s sovereign capability for defence manufacturing is essential at a time of increasing geo-political instability, making the ongoing delay in the publication of the DIP even more inexcusable.

 “The government is currently looking to fund the cost of paying for the DIP through cuts to departmental capital programmes. Unite believes that the government’s fiscal rules should be relaxed to allow the government to borrow to invest in defence infrastructure spending.”

Unite general secretary Sharon Graham added: “What is going on in regard to yet another delay on the DIP is fast becoming a national disgrace. Make no mistake jobs and skills are at risk.

“John Healey’s resignation letter has laid bare the utter chaos at the heart of government on this issue.  Defending the UK and investing in our defence industry simply can’t be done on the cheap. British defence needs investment. Failure to protect UK defence jobs would be a national betrayal.

“The government scrabbling around robbing Peter to pay Paul on such a critical plan is embarrassing and a sign of weakness. The government needs to do what Unite has been calling for months and months to loosen the fiscal rules to allow proper investment in the nation’s defence infrastructure.”

Unite has highlighted that the need for the DIP to ensure that contracts including a new tranche of Typhoon fast jets – which would be built by Lancashire defence workers - are signed off and production lines in Britain are rolling as soon as possible.

Last month Lancashire Business View reported that the UK was reportedly preparing to inject £6bn into GCAP.

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

In a statement last month, a BAE Systems spokesperson told Lancashire Business View: “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 MoD 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.