Babcock and Airbus chiefs call on UK to boost defence spending
Two of the UK’s biggest defence firms have called on the government to spend more money on its armed forces.
Ben Bridge, the UK boss of Airbus, which makes army helicopters among other essential combat supplies, told the Mail on Sunday that the UK must up its commitment to defending itself to keep on top of the changing nature of global conflicts.
“The imperative for the UK to improve spending on defence and nurture its sovereign defence capabilities is not merely a vanity project,” he said.
“It is the minimum requirement at this time to ensure we comprehensively pre-empt the rapidly evolving nature of warfare and ensure Nato remains unified against any potential threat.”
David Lockwood, head of defence contractor giant Babcock, told the paper that the war in Ukraine had “fundamentally changed” assumptions about the risks the UK faces.
Defence secretary Grants Shapps has previously called for defence spending to rise to 3 per cent of GDP; a step up from the government’s previous target of 2.5 per cent of GDP, which Shapps has said would be possible “when conditions allow”.
But a recent House of Commons public accounts committee report has found a funding gap of up to £29bn over the next decade, which MPs say will lead to vital equipment plans being axed.
BAE’s shares are up 43 per cent in the last year, with its order backlog reaching record levels in 2023 from higher defence spending amid the war in Ukraine and rising geopolitical tensions globally.
Babcock, meanwhile has seen shares jump 72 per cent in the 12 months since March last year and 23 per cent in 2024.