UK defence exports hit £20bn record in 2025
British defence exports reached more than £20bn in 2025-the highest value since records began in 1983-driven by two landmark deals and a run of mid-sized contracts. Ministry of Defence figures suggest the activity directly supports over 25,000 UK jobs, with order visibility stretching well into the 2030s.
Policy and geopolitics matter. The government’s Strategic Defence Review framed defence as a growth engine; matching that, London and Oslo signed the Lunna House agreement this month to operate Royal Navy and Royal Norwegian Navy frigates as an interchangeable force in the North Atlantic. In parallel, the Royal Navy’s Atlantic Bastion programme is moving from concept to contracting to counter a rising undersea threat highlighted by senior naval leaders.
Norway’s £10bn order for at least five Type 26 anti‑submarine frigates-built by BAE Systems in Glasgow-marks the UK’s largest warship export by value. The package deepens a joint UK‑Norway fleet of 13 Type 26s and underpins long‑run production at Scottish yards.
Supply chain reach is wide. Official figures say 432 British companies feed into Type 26, including 222 SMEs, with clusters beyond Glasgow: 103 in Scotland overall, 47 in the North West and 35 in the West Midlands. For many suppliers, call‑offs extend into the early 2030s.
Türkiye’s purchase of 20 Eurofighter Typhoons, signed in October for up to £8bn, is the biggest UK fighter export in a generation. Downing Street says the order supports around 20,000 jobs across Warton and Samlesbury (BAE), Bristol (Rolls‑Royce) and Edinburgh (Leonardo); Reuters reports first deliveries from 2030 and a weapons package including Meteor and Brimstone.
Rights concerns remain part of the discussion. The Guardian noted criticism of the Türkiye sale amid domestic political tensions; ministers point to the UK’s licensing regime. The new Agreement on Defence Export Controls streamlines approvals within joint European programmes but does not weaken the UK’s Strategic Export Licensing Criteria.
Behind the headlines are steady mid‑tier wins. The government confirms the sale and overhaul of 12 ex‑RAF C‑130J aircraft for Türkiye, with a combined value to UK defence and Marshall Aerospace of over £550m-safeguarding about 1,400 skilled roles in Cambridge. Marshall separately detailed a multi‑year support contract covering maintenance, spares and training.
Devon‑based Supacat signed for 18 HMT Extenda vehicles with Czechia’s special forces-a clear illustration of smaller exporters riding the same wave. Janes notes deliveries from 2026 with integration work handled by Czech partners.
The long runway is AUKUS. A 50‑year UK‑Australia treaty agreed in July is expected to support more than 21,000 UK roles at peak and unlock up to £20bn in export potential tied to the future SSN‑AUKUS submarine, according to UK officials and Australian reporting.
On future capability, Atlantic Bastion is notable for investors and suppliers: the Navy plans to procure anti‑submarine sensing “as a service” before transitioning to an owned fleet of autonomous systems-boosting persistence in the GIUK gap. That model favours agile SMEs alongside primes.
For SMEs, the practical checklist is familiar: longer‑dated schedules, tighter quality documentation, and larger working‑capital bridges as payment milestones stretch. One watch‑out is European procurement policy: talks for the UK to join the EU’s SAFE defence fund stalled in November, making the new Franco‑German‑Spanish export controls agreement more important to cross‑border programmes.
Looking into 2026, ministers are signalling more export activity across advanced aircraft, maritime systems and wheeled armour such as Boxer, building on the October Germany‑UK cooperation push referenced by Downing Street. The record 2025 tally sets a high bar but also a baseline for multi‑year planning in yards and factories.
What this looks like on the shopfloor: in Glasgow, apprentice welders on the Clyde have stable shifts on Type 26 blocks; in Lancashire, composite technicians see Typhoon work continue rather than taper; in Cambridge, avionics engineers rotate through C‑130J wing‑box upgrades. It’s unglamorous, high‑skill work-and it is now booked years ahead.