BAE Systems Chief Executive Charles Woodburn has warned that UK defence spending remains insufficient to protect the country, despite the Government’s recent commitment to increase military funding.
Speaking to the BBC, Woodburn described the current security environment as “the most threatening time I’ve seen”, citing Russia’s military activity and the changing nature of modern warfare as major concerns.
His comments come after the Government announced an additional £15 billion for defence in June. However, former Defence Secretary John Healey resigned shortly afterwards, arguing that the funding was inadequate to meet Britain’s growing security challenges.
At the time, Healey wrote to Prime Minister Sir Keir Starmer saying he had been “unable, and the Treasury has been unwilling, to commit the resources that the nation needs to defend the country at this time of rising threats”.
Woodburn said the additional investment still “falls well short of what is needed to protect the country”.
“This is by far the most threatening time I’ve seen,” he said.
“Even when I joined the company in 2016, I was amazed at what we saw Russian submarines doing, the cyber attacks.”
“I think that’s come a long way sadly as a result of the Ukraine conflict; we’re much more aware of the proximity of a hot war in Europe.”
The BAE chief also highlighted how warfare has evolved rapidly since Russia’s invasion of Ukraine, particularly through the widespread use of drones.
He said modern warfare had “changed quite profoundly”, adding that Russia and Ukraine had become “incredibly adept” at deploying drones and counter-drone technology.
“It’s something that we now have to really understand and make sure that we’re able to provide the capabilities that can counter that and deter aggression.”
The comments come amid heightened geopolitical tensions following Iran’s accusation that the UK was complicit in US military operations by allowing American forces to launch defensive strikes from British bases.
Prime Minister Andy Burnham has maintained the agreement allowing US forces to use UK military facilities, including RAF Fairford in Gloucestershire.
Defending the policy, junior Housing Minister Sally Jameson said the Government would continue to prioritise national security.
“I think that’s the right position for the moment because the British government always makes sure that our interests are protected, our defences are protected, and that British citizens that are living abroad and living in that region are kept safe.”
Investor confidence in the defence sector also strengthened this week. Shares in BAE Systems rose 3.25%, while other defence companies also gained after John Healey was appointed Chancellor, raising expectations of further military spending.
Woodburn welcomed the appointment, saying: “The fact that he understands the requirements of defence we see as a very positive thing.”
The optimism follows the Ministry of Defence’s decision to award BAE Systems a £708 million contract extension to continue developing the UK’s next-generation combat aircraft.
Defence Secretary Wes Streeting said: “This investment in advanced combat air technology for the UK Armed Forces will strengthen our defence and deterrence, and shows our clear commitment to backing British workers with our defence investment, creating jobs and supporting communities across the UK.”