The chief executive of BAE Systems, Charles Woodburn, has urged Prime Minister Andy Burnham to provide a clear plan to meet NATO defence spending targets amid growing concerns over national security. Woodburn welcomed Burnham’s commitment to achieving the NATO goal of allocating 3.5% of the United Kingdom’s national income to defence by 2035 but noted the need for a detailed pathway to reach that benchmark.
Burnham has declined to commit to an earlier target proposed by some officials to reach 3% defence spending by 2030, despite escalating fears over potential security threats from Russia under Vladimir Putin’s leadership. Woodburn emphasized the importance of clarity, saying stakeholders are seeking a defined strategy on how the government intends to accelerate investment in national defence.
The call for increased spending comes as BAE Systems posted strong financial results for the first half of the year. The company reported an 11% increase in underlying profits to £1.7 billion, alongside a 9% rise in sales to £15.8 billion. BAE’s order backlog reached a record £84 billion, supported by higher demand following Russia’s full-scale invasion of Ukraine in 2022. The defence contractor raised its full-year profit forecast to a 10-12% increase, up from an earlier projection of 9-11%. Shares in BAE rose amid the announcement.
The financial update coincided with a ceremony at BAE’s Barrow shipyard where Burnham, alongside Defence Secretary Wes Streeting and Woodburn, announced a £5.9 billion investment in the next stages of the Dreadnought-class nuclear submarine programme. The visit marked a show of support from the new government leadership, with Burnham having been in office for just over a week.
Earlier in the year, the sector faced uncertainty due to delays in the government’s Defence Investment Plan (DIP), which was finally published last month. The plan includes commitments to key projects such as the Global Combat Air Programme (GCAP), a multinational fighter jet initiative involving the UK, Italy, and Japan. Woodburn expressed satisfaction with the DIP and stressed that the presence of the Prime Minister and Defence Secretary at Barrow sends a strong message of support for the defence industry.
Woodburn also highlighted a shift in public awareness regarding the threats posed by Russia and other potential adversaries. He cautioned against complacency, emphasizing the importance of protecting democratic freedoms and national security.
John Healey, the new Chancellor, had previously served as Defence Secretary and resigned from the government over disagreements on defence spending targets, advocating for reaching the 3% NATO benchmark by 2030. His recent appointment has been viewed positively by defence industry leaders. Meanwhile, Defence Secretary Wes Streeting has avoided committing to the 3% target but has stated his intention not to underfund defence needs.
Woodburn’s remarks have intensified pressure on Burnham’s administration to clarify how it will advance the UK’s defence capabilities amid a shifting global security landscape.