Weekly Defence Rundown 15th – 21st September 2025

In a week filled with state visits and heightened tensions between Russia and NATO, the key headline for the week was that the UK will officially recognise a Palestinian state. Marking a significant change in UK policy, the announcement made by Sir Keir Starmer follows Australia, Canada, and Portugal’s decision to formally recognise the state of Palestine, with France expected to follow shortly. The US and Israel both strongly condemned the decision, arguing that it rewards Hamas and terrorism.

Despite the clear divergence between the US and UK on Palestine, President Trump arrived in the UK for his unprecedented second state visit to the UK. For all the pomp, praise, and pageantry bestowed on the US president, Starmer was rewarded by securing deals for the automotive, aerospace, and tech industries. Coming at the same time as the state visit, US companies also announced $150 billion worth of investment in the UK, with tech being the biggest winner of this investment. Relevant for the defence industry, Microsoft has pledged to invest £22 billion in the UK over four years while Palantir will invest £1.5 billion by 2030, and is also in the process of finalising a £750 million deal with the MoD.

Finally, after the UK signed up to NATO’s new Eastern Sentry mission, the MoD has announced that two RAF Typhoons have completed their first patrol of Polish airspace, returning back to RAF Coningsby early Saturday morning.

Defence Brief: Key Insights from the Week        

• UK universities to develop weapons in ‘brains race’ with China (The Times)
• Royal Navy contract handed to Dutch firm facing prosecution (The Times)
• ‘UK must do more to prevent catastrophic undersea cables attack’ (The Times)
• Jobs at risk as BAE Systems reshapes naval ships arm (The Times)
• UK talks to join EU defence fund stalled over participation fee (Financial Times)
• British warship to be built by Navantia in Spain (The Times)
• Europe turns to Ukrainian tech for ‘drone wall’ against Russia (Financial Times)
• Microsoft pledges £22bn for British supercomputer and data centres (The Times)
• British fighter jets to fly air defence missions over Poland after Russia’s drone incursion (Sky News)
• MoD weighed down by civil servants, says outgoing defence chief (The Times)
• New drone factory to open in Swindon in 2026 (Sky News)

Industry Latest:

• Babcock and Hanwha team up for Canadian submarine project (UK Defence Journal)
• Saab and MANGROVE Consortium to lead on NATO’s AUWB-MN (Calibre Defence)
• Lockheed’s Skunk Works reveals Vectis stealth drone, eyeing first flight in 2027 (Breaking Defense)
• UK to build surveillance aircraft for America in new deal (UK Defence Journal)
• EU invest €30m in first private credit vehicle dedicated to defence (Army Technology)
• UK seeks new light aircraft in Project TELUM (UK Defence Journal)
• NP Aerospace introduces body armour for women (Calibre Defence)
• Leonardo confirm latest in EW – BriteCloud, BriteStorm (Airforce Technology)
• QinetiQ wins training simulation contract for future Dreadnought-class crews (Janes)

Direct from Government:

• UK fighter jets begin NATO air defence missions to bolster European security (MoD Press Release)
• Jobs boost as UK set to build military aircraft for United States for first time in over fifty years (MoD Press Release)
• New strategic partnership to unlock billions and boost military AI and innovation (MoD Press Release)
• UK fighter jets to join NATO operation to bolster European security (MoD Press Release)
• New drone factory to open in Swindon, creating skilled jobs and strengthening British manufacturing (MoD Press Release)

News from Further Afar:

• Israel has launched its ground operation in Gaza City. While the new offensive was approved by the Trump administration, it has received widespread condemnation from Israel’s allies in Europe (The Times)
• The US Department of Defense – soon to be renamed the Department of War – has told news organisations that journalists must sign a pledge to not publish unauthorised information as a condition for their continued access to the Pentagon (Financial Times)
• As tensions between France and Germany continue over the €100 billion Future Combat Air System (FCAS), Berlin is reportedly exploring options to replace France with Sweden or the UK, unless a deal is struck by the end of the year (Politico)
• Saudi Arabia and Pakistan have signed a “strategic mutual defence” pact. Coming after the Israeli attack on Doha, the pact is seen as a signal to the US and Israel that Saudi Arabia is looking to diversify its security alliances (Financial Times)
• The European Commission has approved Germany’s seven-year spending plan to massively expand its budget, paving the way for Berlin to significantly increase spending on defence and infrastructure (Politico)
• Rheinmetall has announced its acquisition of the Bremen-based naval group, Naval Vessels Lürssen. Armin Papperger, Rheinmetall’s Chief Executive, stated that the deal is part of the business’ move to establish a “naval powerhouse in Germany” (Financial Times)
• Following incursions into Polish and Romanian airspace by Russian drones, on Friday, three Russian MiG-31 fighter jets violated Estonia’s airspace. The Estonian government said the incursion lasted 12 minutes (Reuters)

CMS Podcast of the Week:

BFBS Radio Sitrep | RAF Typhoons Head To Poland

Coming Up This Week:

The House of Commons and House of Lords have now risen for conference recess and will return on 13^th October, and with it the return of House of Commons Defence Questions and Defence Committee sessions, which have more or less been on hold since summer recess. While Reform UK’s conference has already been held, Labour Party Conference is from 28^th September to 1^st October and the Conservative Party Conference will take place from 5^th-8^th October.

Also worth keeping an eye on is the speculation over who will be appointed as the next US ambassador, after Peter Mandeslson was sacked as a result of his close relationship with Jeffrey Epstein. According to the Financial Times, Lord Mark Sedwill, Varun Chandra, and Richard Moore are seen as the favourite candidates for the job.

Additionally, while unlikely to be published during conference recess, the Defence Investment Plan – which will set out how the Strategic Defence Review will be financed and delivered – is due to be published in Autumn.

Finally, on geopolitics, the Istanbul Bridge – a Chinese-owned container ship – is due to set sail for Felixstowe, east Suffolk, on Wednesday via the Arctic. As reported in The Times, this marks the first regular “over-the-top” commercial sailing route from China to western Europe and is expected to reduce the 40-day journey via the Indian Ocean to 18 days.

Image: Sgt Donald C Todd and is under UK MOD © Crown copyright 2025

 

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