UK Spring Statement 2025: Key Defence & Industry Wins
The UK government’s Spring Statement 2025 outlines major investments in defence, innovation, and regulatory reforms, benefiting the aerospace, defence, security, and space (ADS) sectors.
Key highlights include a £2.2 billion increase in the defence budget for 2025-26, raising total additional spending to over £5 billion since the Autumn Budget. This moves the UK towards its goal of spending 2.5% of GDP on defence by 2027, with 2.36% allocated in 2025-26.
A new UK Defence Innovation (UKDI) unit will be established to drive advanced military technology, with 10% of equipment spending ringfenced for emerging technologies. Defence exports will also receive a £2 billion boost through UK Export Finance, increasing available direct lending to £10 billion.
Additional measures include a £3.25 billion transformation fund to modernize public services using digital technology and AI, £8 million for offender management technology, and bespoke procurement processes for military equipment. A 25% reduction in regulatory compliance costs will support businesses through the Regulation Action Plan.
To oversee these initiatives, the government will form a new Defence Growth Board, co-chaired by the Chancellor and Defence Secretary.
ADS Chief Executive Kevin Craven welcomed the package, emphasizing its importance for national security, industry innovation, and international competitiveness. He reaffirmed the defence sector’s readiness to support the UK’s strategic ambitions and growth agenda.
UK to Equip Four Warships with Laser Weapons by 2027
Chancellor Rachel Reeves has confirmed an additional £2.2 billion in defence funding as part of the UK’s strategy to increase defence spending to 2.5% of GDP by 2027. This funding, announced during the Spring Statement, will support advanced technologies, including directed-energy weapons and AI.
A key focus is the expanded rollout of the DragonFire laser-directed energy weapon, developed by the Defence Science and Technology Laboratory, MBDA, Leonardo, and QinetiQ. Initially planned for one Royal Navy vessel, the system will now be deployed on four warships by 2027. DragonFire can target drones at distances up to 5 kilometres and is cost-effective, with each shot costing under £10.
The investment also includes spending on AI, drones, and a £400 million innovation fund. The Government aims to boost national security and stimulate economic growth by advancing technologies and supporting defence jobs across key hubs. Despite fiscal constraints, Reeves emphasized the strategic importance of this funding for the UK’s security and industrial future.
UK MoD Plans £208M Armour Deal
The UK Ministry of Defence (MoD) has announced plans for a new £208 million framework agreement for Personal Hard Armour procurement to equip British Armed Forces personnel. Managed by Defence Equipment and Support (DE&S), the framework will run from October 2025 to October 2033 and could rise to £250 million, including VAT.
The initiative aims to streamline procurement, ensuring quick access to ballistic protection while fostering innovation. It will cover body armour replacements, reduced-threat plates, buoyant armour for maritime use, and covert protection solutions.
The MoD will establish a “non-committal open framework,” allowing approved suppliers to bid on future orders without a guaranteed purchase volume. Full tender details will be released later via the UK government’s Find a Tender platform.
Babcock Wins £1B British Army Support Contract
Babcock has secured a five-year contract extension worth £1 billion with the UK Ministry of Defence (MoD) to continue supporting the British Army’s vehicle fleet, training programs, and operational readiness.
As a strategic partner, Babcock will enhance equipment availability, asset management, and supply chain efficiency under the DSG Service Provision and Transformation Contract (SPTC). The extension aligns with the Defence Industrial Strategy and includes investments in workforce development, facilities, and apprenticeships across more than 20 UK sites.
CEO David Lockwood emphasized Babcock’s role in equipping the Army amid global instability, while Defence Secretary John Healey highlighted the contract’s contribution to national security and economic growth.
The total contract, valued at £1.6 billion, reinforces Babcock’s long-term commitment to modernizing UK defence capabilities.
Airbus UK to Land Mars Rover
A UK aerospace company has secured a £150 million contract to develop the landing platform for Europe’s first Mars rover, Rosalind Franklin. Awarded by the European Space Agency and funded by the UK government, the contract will support 200 high-skilled jobs and boost Britain’s space sector.
Built by Airbus UK in Stevenage, the rover will drill two meters beneath Mars’ surface to search for signs of past life. Originally set to launch in 2022, the mission was delayed after ESA ended cooperation with Russia. The UK has since stepped in to replace Russian components, including the lander platform and key scientific instruments.
Scheduled for launch in 2028 and landing in 2030, the mission will advance space robotics and autonomous navigation, with potential applications on Earth. The UK government views it as a major step in strengthening Britain’s position in the global space industry.
GE Aerospace Invests €78M in Europe
GE Aerospace will invest over €78 million in its European manufacturing sites in 2025, including €3.3 million in the UK. The investment aims to boost capacity, enhance facilities, and support production of next-generation aircraft engine components using advanced materials and AI-driven inspection technologies.
The funding will upgrade test cells, machinery, and specialized tools across five countries:
Italy (€55.6M): New test cells, inspection tech, and upgrades for aircraft and military jet engines.
Poland (€11.6M): Machinery and infrastructure improvements for engine component production.
Czech Republic (€5.4M): Equipment and tooling upgrades for turboprop engines.
Romania (€2.3M): Precision machinery and facility enhancements.
UK (€3.3M): New machines and production setups for component manufacturing and propeller system servicing.
With over 500 new jobs expected across European sites, GE Aerospace continues its commitment to workforce development, supporting apprenticeship programs in the UK and Poland.
Telespazio UK Wins ESA Contract for SOOP Proof-of-Concept
Telespazio UK, a subsidiary of Telespazio, has been awarded an €800,000 contract by the European Space Agency (ESA) under the Navigation Innovation and Support Programme (NavISP). The contract aims to develop a Proof-of-Concept for Signals of Opportunity (SOOP) using Broadband Satcom signals in Ku/Ka bands.
Telespazio UK will lead the project with key sub-contractors including Novocomms Ltd, Eutelsat OneWeb, and Cranfield University. The project focuses on enhancing Position, Navigation, and Timing (PNT) resilience by leveraging existing satellite signals for navigation, reducing dependence on traditional GNSS systems vulnerable to interference or jamming.
SOOP Positioning utilizes signals from telecommunication mega-constellations in Low Earth Orbit, offering advantages like frequency diversity, higher orbit heights, and signal structure, along with improved time estimation. The project, named SATSOOP, will create a breadboard demonstrator to showcase a small receiver and reference station using Ku/Ka band signals.
Geoff Busswell, Vice President of Business Growth at Telespazio UK, emphasized the importance of building resilient PNT solutions for safety-critical applications. The project aims to provide robust alternatives to traditional navigation systems, ensuring greater security for future applications.
Felix Abel, Technical Officer at ESA, praised Telespazio UK’s experience and capabilities in providing alternative PNT solutions, highlighting the project’s significance for strengthening PNT resilience.
CMAL Signs Contract for Electric Ferries
Caledonian Maritime Assets Limited (CMAL) has signed a £147.5 million contract with Poland’s Remontowa Shipbuilding to construct seven new Loch-class electric ferries under the Small Vessel Replacement Programme (SVRP). The vessels will enhance ferry services for Scottish island communities, with the first delivery expected in 2027.
Backed by a £160 million investment from the Scottish Government, the project aims to modernize the Clyde and Hebrides fleet, reducing emissions and improving resilience. An additional three vessels will be procured in a second phase later this year.
CMAL Chief Executive Kevin Hobbs highlighted the significance of the contract, noting plans to replace up to 16 vessels in the next six years. Remontowa, previously responsible for building MV Finlaggan, MV Bute, and MV Argyle, expressed confidence in delivering high-quality, reliable ferries.
The next phase will involve finalizing detailed vessel designs before construction begins.
Avon Secures NATO Orders for Ukraine & Europe
Wiltshire-based Avon Technologies has received two European NATO orders to supply FM50 respirators and C50 protective masks to the Armed Forces of Ukraine. The FM50 mask, one of the most advanced military respirators, enhances protection and operational effectiveness.
The deal comes amid concerns over Russian forces using hazardous chemicals in Ukraine, with the UK and US previously sanctioning Russia for violating the Chemical Weapons Convention.
Additionally, Avon Protection has signed a multinational framework contract with two European navies for its MCM100 Multi-Role Rebreather. The 12-year program covers rebreather systems, accessories, training, and maintenance, reinforcing Avon’s presence in NATO’s underwater mine clearance operations.
CEO Jos Sclater highlighted Avon’s ongoing contributions to NATO security and the company’s strong financial momentum, with revenue growth exceeding expectations in FY25.
CYSIAM & CrowdStrike Strengthen Cybersecurity
CYSIAM has announced a strategic partnership with CrowdStrike to enhance cyber resilience across the UK defence sector supply chain. The collaboration will integrate CYSIAM’s 24/7 managed security expertise with CrowdStrike’s Falcon cybersecurity platform, providing real-time threat intelligence and AI-driven endpoint protection.
With increasing cyber threats targeting the UK defence supply chain, the partnership aims to fortify critical infrastructure while ensuring compliance with the Ministry of Defence’s updated Cyber Security Standard for Suppliers (DEF STAN 05-138 Issue 4).
David Allan, CEO of CYSIAM, emphasized the importance of securing the defence sector, stating that the partnership ensures organisations can protect their assets while meeting evolving compliance standards. Ben Emslie, Vice President of Sales at CrowdStrike, highlighted the collaboration’s role in delivering AI-powered defence capabilities to combat emerging threats.
The initiative will provide bespoke cybersecurity solutions aligned with MoD regulations, reinforcing the UK’s defence supply chain against sophisticated cyber adversaries.
AmSafe Bridport, Nolinor Aviation Partner on Boeing 737-200 FCCs
AmSafe Bridport has teamed up with Nolinor Aviation to develop and implement Fire Containment Covers (FCCs) and specialized netting for the airline’s Boeing 737-200 fleet, enabling compliance with upcoming regulatory changes
AmSafe Bridport customized the FCC solution to meet Nolinor’s unique operational needs, particularly for gravel runway access. The FCCs provide up to six hours of passive fire containment, offering enhanced protection against in-flight fire hazards while allowing Nolinor to retain the operational flexibility of its cargo configurations. This solution eliminates the need for fixed bulkheads, which would limit cargo flexibility.
The rollout is already underway, with full compliance expected well before the regulatory deadline. AmSafe Bridport is also providing a dedicated training program to ensure smooth integration of the FCCs by flight and ground crews.
Natalie Paul, Vice President at AmSafe Bridport, emphasized the collaboration’s focus on safety and adaptability, while Marco Prud’Homme, President of Nolinor Aviation, highlighted the importance of preserving the aircraft’s performance on gravel runways. With a service life of three years and rigorous inspections, AmSafe Bridport’s FCCs set a new standard in regulatory compliance and safety for combi aircraft operations.
Inzpire’s CASE JTAC Simulator Accredited
Inzpire’s Compact Agile Simulation Equipment for Joint Terminal Attack Controllers (CASE JTAC) has become the UK’s first accredited mixed-reality JTAC simulator, approved for Types 1, 2, and 3 controls.
Certified by the UK Ministry of Defence and NATO’s international Memorandum of Agreement, the deployable simulator enables realistic competency and currency training for JTACs across all member states.
CASE JTAC integrates mixed-reality technology with real-world peripherals, creating an immersive 360-degree synthetic battlespace. Designed alongside CAS experts, it enhances mission rehearsal and decision-making in complex scenarios.
Developed in collaboration with Varjo, Bohemia, and SIMCentric, CASE JTAC is available as a standalone product or training service with Inzpire’s accredited instructors. It has already proven its value in NATO exercises, reinforcing its role in modern battlefield training.
Sonardyne Unveils SPRINT-Nav U
Sonardyne International Ltd has launched SPRINT-Nav U, the world’s smallest hybrid acoustic-inertial navigator, designed for compact marine robotic platforms. Measuring just 135 mm tall and 114 mm in diameter, and weighing only 600 grams in water, the device brings survey-grade navigation to small ROVs, AUVs, towfish, and USVs.
The system integrates AHRS, DVL, INS, and a pressure sensor into a single unit, simplifying setup while optimizing size, weight, and power efficiency. Offering 0.1% error for distance traveled and 0.15° heading accuracy, it delivers precise navigation even in ferrous environments where MEMS-based systems struggle.
Ideal for offshore wind operations, SPRINT-Nav U enables accurate inspections of wind turbine foundations, cables, and subsea infrastructure without interference from steel structures.
John Houlder, Senior Product Manager at Sonardyne, called it a “game-changer” for offshore wind monitoring, ensuring high-quality data collection in challenging environments.
Thanks for reading – we hope you found it useful!