The past week may go down as one of the busiest weeks in Defence, with not only the publication of the long-awaited Strategic Defence Review (SDR), but also with the news that the UK has agreed to significantly increase its defence spending to 3.5% of GDP, after bowing to pressure from NATO. However, this will apply further pressure on the Government, after questions were raised over how the SDR would be funded, with ministers refusing to outline a timeline to spending 3% of GDP on defence. In other headlines, it was revealed that Air Chief Marshal Sir Richard Knighton will replace Admiral Sir Tony Radakin as the next Chief of the Defence Staff.

Defence Brief: Key Insights from the Week:

• The Strategic Defence Review was published on 2^nd June, setting out how to make Britain ‘secure at home and strong abroad. The Government accepts all 62 recommendations (MoD Press Release)
• Following the publication of the SDR, the Financial Times suggested that the recommendations will cost at least £67.6bn through to the late 2030s, raising questions over how Defence will be funded, given the Government’s hesitancy to set a timeline to spending 3% of GDP (Financial Times)
• However, 24 hours after the publication of the SDR, pressured by NATO Secretary-General Mark Rutte, Sir Keir Starmer agreed to a new spending target of 3.5% of GDP (The Telegraph)
• The European Commission approved the joint venture between Britain’s BAE Systems, Italy’s Leonardo, and the Japan Industrial Enhancement Co., to manage the Global Combat Air Programme (The Financial Times)
• Air Chief Marshal Sir Richard Knighton is selected by Starmer to replaced Admiral Sir Tony Radakin as the next Chief of the Defence Staff. He will take over the role in Autumn (The Times)

Breaking Down the Strategic Defence Review:

• £11bn annual budget to fund front-line kit.
• £15bn investment in the sovereign warhead programme this Parliament.
• Build 12 new attack submarines as part of AUKUS, with a new submarine delivered every 18 months.
• A ‘New Hybrid Navy’ will use aircraft, drones, warships, and submarine to patrol the North Atlantic and beyond.
• A ten-fold increase in the lethality of the British Army.
• A next-generation RAF, through F-35 and Typhoon jets and autonomous aircraft.
• £1bn investment in homeland air and missile defence and the creation of a CyberEM Command.
• £6bn investment in munitions this Parliament, including £1.5bn for an ‘always on’ pipeline for munitions and building at least 6 new energetics and munitions factories.
• Build 7,000 new long-range weapons.

Latest Developments in the Defence Industry:

• The MoD will spend up to £240 million on two DragonFire laser directed-energy weapon systems for Royal Navy warships (UK Defence Journal)
• A prior information notice (PIN) to industry was issued by the MoD for Project ‘Volley Launcher’, a rapid launch capability for UAVs using vans (Janes)
• The UK will consider participating in NATO’s air-launched nuclear deterrent mission, a development which would mark the country’s most significant defence expansion since the end of the Cold War (Janes)
• The MoD published its plans to award Thales UK a 15-year and £2.9 billion sensor support contract (UK Defence Journal)
• LendurAI, an Estonian company producing autonomy stacks for drones to allow them to operation in GPS-denied environments, secured €5.7 million in seed funding (Calibre Defence)

Direct from Government:

• Transformative £86 billion boost to science and tech to turbocharge economy, with regions backed to take cutting-edge research into own hands (DSIT Press Release)
• The Strategic Defence Review 2025 – Making Britain Safer: secure at home, strong abroad (MoD Press Release)
• British Army to increase lethality over the next decade while Royal Navy steps up innovation in NATO (MoD Press Release)
• Tenfold increase in UK drone deliveries for Ukraine at 50-nation Ukraine summit (MoD Press Release)

News from Further Afar:

• The UK’s Carrier Strike Group, led by HMS Prince of Wales, has successfully transited the Bab-el-Mandeb strait, which connects the Red Sea with the Gulf of Aden, entering the Indian Ocean (Defence Eye)
• Donald Trump’s plans for a “Golden Dome” missile shield has reportedly triggered a lobbying battle between Silicon Valley and America’s defence groups to get a slice of the $175 billion project (Financial Times)
• As part of the “Golden Dome”, BAE Systems secured a $1.2 billion contract from the US Space Force to provide 10 satellites for the Pentagon’s missile warning and missile tracking programme (The Telegraph)
• Ukraine launched its most daring attack against Russia in the course of the 3 year conflict. Involving over 100 drones, Operation Spiderweb damaged 34% of Russia’s strategic bomber fleet across five airbases, causing an estimated $7 billion of damage (Calibre Defence).

CMS Podcast of the Week:

The Times: The Story | General Sir Richard Barrons: No water, no power, no comms: the attack Britain should prepare for

Coming Up This Week:

NATO Secretary-General Mark Rutte is at Chatham House in London on Monday, calling for a 400% increase in the bloc’s air and missile defences. Sir Keir Starmer will meet with Rutte to discuss NATO’s prospective new 5% spending target, which is due to be implemented at the NATO summit later in June.

On Wednesday (11^th), Chancellor Rachel Reeves will unveil the Spending Review, setting out how much money each government department will receive over the next 3-4 years. Health and defence are expected to be winners. However, it is unlikely that any increase in the defence budget will go far enough to meet the recommendations set out in the SDR.

It’s also a busy week for the House of Commons Defence Committee, who will be hearing from Chief of the Defence Staff, Admiral Sir Tony Radakin, on Tuesday (10^th), and the reviewers of the Strategic Defence Review on Wednesday (11^th).

Image: Cpl Phil Dye and is under UK MOD © Crown copyright 2024

CMS Strategic specialises in defence communications and government relations, helping clients operating in the cybersecurity, aerospace, maritime, land, and defence technology fields stay ahead. CMS Strategic supports defence companies of all sizes in navigating policy changes, engaging with key stakeholders, and aligning their messaging with evolving government priorities. By continuously monitoring the defence landscape, CMS Strategic ensures its clients stay informed, proactive, and strategically positioned in a fast-changing industry.