UK Spends Big on New Defence Tech Like Drones

The UK is putting a lot of money into new defence technology, especially drones and advanced weapons. This is to help keep the country safe and be a leader in defence technology.
By Newsroom | Defence, Technology |

Recent developments signal a significant acceleration in the United Kingdom's defense technology sector. A series of substantial financial injections and strategic policy shifts indicate a concerted effort to bolster national security, foster innovation, and enhance the UK's position within the global defense industry. These actions come amidst a backdrop of heightened geopolitical tensions and a growing reliance on advanced technologies, particularly in the realm of uncrewed systems.

Context: A Shifting Defence Landscape

The United Kingdom's defense sector is undergoing a notable transformation, driven by both domestic policy and international dynamics. The Defence Industrial Strategy (DIS), a key policy document, aims to align defense spending with economic growth and national resilience. This strategy is supported by a series of funding initiatives and the establishment of new bodies dedicated to innovation.

From Spitfires to drones: the UK defence tech cluster harnessing its industrial past - 1

  • Timeline:

  • December 2025: UK Defence Innovation (UKDI) announces a £140 million investment in drone and counter-drone technology. This follows a £35 million funding boost for innovation across the UK announced earlier in December.

  • June 2025: A major £5 billion technology investment is revealed, with over £4 billion allocated to autonomous systems and nearly £1 billion for Directed Energy Weapons (DEW).

  • July 2025: German drone maker Stark establishes a new manufacturing facility in Swindon, signaling international confidence in the UK's defense industrial capabilities.

  • Ongoing: The UK government, through various channels, emphasizes its commitment to making the UK a leading environment for defense businesses and innovation, drawing lessons from recent global conflicts.

  • Key Actors:

  • UK Government: Ministry of Defence (MoD), UK Defence Innovation (UKDI), DASA (Defence, Science and Technology Laboratory).

  • International Companies: Stark (German drone manufacturer), Anduril (US defense tech company).

  • Industry: Small and Medium-sized Enterprises (SMEs), Micro-SMEs, academic institutions, and larger defense primes like BAE Systems.

  • Driving Factors:

  • Geopolitical Tensions: The war in Ukraine has highlighted the critical importance of drone technology and the need for rapid adaptation. Concerns about Russian drone incursions are also a significant driver.

  • Technological Advancement: The rise of autonomous systems, artificial intelligence, and directed energy weapons necessitates substantial investment to maintain a competitive edge.

  • Economic Growth: The government views the defense sector as an "engine for growth," aiming to create skilled jobs and boost the economy through defense spending and exports.

  • Supply Chain Resilience: Ensuring a robust and secure supply chain for defense technologies is a growing priority.

Investment and Innovation Initiatives

The UK is channeling significant funds into its defense technology capabilities, with a particular focus on emerging and advanced systems.

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  • Autonomous Systems and Directed Energy Weapons (DEW):

  • A substantial £5 billion investment was announced, with over £4 billion earmarked for autonomous systems.

  • Nearly £1 billion is dedicated to Directed Energy Weapons (DEW), including programs like DragonFire.

  • These investments are expected to create approximately 300 skilled jobs.

  • The funding aims to advance frontline capabilities and enhance the UK's export potential.

  • Drone and Counter-Drone Technology:

  • UK Defence Innovation (UKDI) has pledged over £140 million in its first year for drone and counter-drone technologies.

  • This funding targets new drone systems and aims to support British Small and Medium-sized Enterprises (SMEs), Micro-SMEs, and universities.

  • The initiative directly addresses lessons learned from the war in Ukraine and aims to counter evolving threats, including Russian drone activity.

  • DASA (Defence, Science and Technology Laboratory) also plays a role, with funding directed towards scaling innovative ideas into frontline military solutions.

  • Broader Defence Innovation Funding:

  • An additional £35 million has been allocated to boost innovation across various defense sectors, supporting companies developing solutions from advanced satellite systems to ballistic defense structures.

  • This funding is intended to strengthen supply chains and create high-skilled jobs nationwide.

International Collaboration and Industrial Revival

The UK is actively seeking international partnerships to bolster its defense industrial base and leverage global expertise.

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From Spitfires to drones: the UK defence tech cluster harnessing its industrial past - 2

  • German Drone Manufacturer Stark:

  • Stark, a German defense technology firm, has established a new 3,700-square-metre (40,000-square-foot) facility in Swindon.

  • This expansion focuses on producing advanced drones, including Stark's Virtus system.

  • The move is seen as a revival of Swindon's industrial legacy and a contribution to European defense technological advancement.

  • It underscores a broader trend of European nations strengthening their homegrown defense innovation capabilities.

  • Dual-Use Technology:

  • There is a growing emphasis on dual-use technology, where innovations developed for civilian purposes can be adapted for defense applications.

  • This approach aims to foster innovation, strengthen supply chain resilience, and maximize the impact of research and development.

  • Support for Ukraine:

  • A new business centre in Kyiv is being established to facilitate UK industry support for Ukraine's Armed Forces.

  • This initiative aims to equip Ukraine with advanced defense technologies and build upon existing successful partnerships, such as the Octopus interceptor drone.

Challenges and Emerging Concerns

Despite the significant investments, some observations suggest potential areas for improvement and concern within the UK's defense innovation ecosystem.

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  • Operationalizing UK Defence Innovation (UKDI):

  • There are questions regarding the visible impact and public engagement of UKDI, with concerns raised about the lack of issued challenge calls or problem statements five months after its launch.

  • Industry stakeholders are reportedly demanding better engagement and a clearer public-facing presence from UKDI.

  • Talent Acquisition:

  • The defense tech sector is experiencing intense competition for talent, leading to soaring salaries and pressure on startups to attract and retain skilled professionals.

  • Strategic Priorities:

  • While investments are being made, the exact "capability mix and force design" will depend on the forthcoming Defence Investment Plan.

  • Concerns exist that without adequate backing for drone development, Western nations, including the UK, might struggle to compete with adversaries producing mass, low-cost weapons.

Investment AreaFunding AmountKey TechnologiesNotable Outcomes
Autonomous Systems> £4 billionUncrewed systems, AI-driven capabilitiesShape UK military future, boost export potential, job creation
Directed Energy Weapons (DEW)~ £1 billionLaser weapons (e.g., DragonFire)Enhance frontline capabilities, job creation
Drone and Counter-Drone Tech (UKDI)> £140 millionAdvanced drone systems, counter-drone measuresSupport SMEs, Micro-SMEs, universities; counter Russian threat
General Defence Innovation (DASA)£35 millionDiverse technologies (satellites, defense structures)Scale innovations, strengthen supply chains, create jobs
German Drone Maker Stark ExpansionUndisclosedVirtus drone systemRevive industrial legacy, fortify NATO, enhance UK manufacturing

Expert Analysis and Signals

  • John Healey MP, Defence Secretary, stated, "These investments will mean the most significant advance in UK defence technology in decades." This indicates a governmental perspective prioritizing technological modernization as a cornerstone of national security and economic strategy.

  • Christian Brose, President of Anduril, warned that without a focus on mass production of affordable systems like drones, "Nato would struggle to build enough conventional warships, fighter planes and missiles to face down Russia within a few years." This perspective highlights a potential strategic gap if innovation is not coupled with industrial capacity for mass production of key technologies.

  • The Defence Industrial Strategy (DIS) is described as a "step-change in the way the Ministry of Defence (MoD) will relate to the industrial base," aiming to transform defense spending into growth and contribute to "social cohesion, resilience, and economic deterrence." This suggests a strategic shift towards viewing the defense industry as a broader economic and social asset.

  • Concerns about UKDI's operational status imply a potential disconnect between policy pronouncements and tangible delivery, suggesting a need for greater clarity and execution from the government.

Conclusion and Implications

The UK defense technology sector is currently experiencing a period of intensified focus and investment. The substantial financial commitments to autonomous systems, directed energy weapons, and drone technology, coupled with strategic policy frameworks like the Defence Industrial Strategy, signal a clear intent to modernize the UK's defense capabilities and stimulate economic growth.

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From Spitfires to drones: the UK defence tech cluster harnessing its industrial past - 3

The establishment of Stark's drone manufacturing facility in Swindon exemplifies a trend of international companies leveraging the UK's expertise, contributing to the revival of its industrial past while strengthening European defense ties. Furthermore, initiatives supporting Ukraine underscore the UK's role in current geopolitical conflicts and its commitment to international security.

However, questions remain regarding the effective operationalization of new innovation bodies like UKDI and the industry's ability to attract and retain critical talent. The perceived gap in mass production capabilities for certain key technologies, particularly drones, also presents a strategic challenge in the face of evolving global threats.

Future developments will likely revolve around:

  • The tangible output and effectiveness of UKDI.

  • The ability of the UK to secure and develop a skilled workforce in advanced defense technologies.

  • The successful integration of dual-use technologies into the defense supply chain.

  • The realization of economic benefits and job creation stemming from these substantial investments.

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The coming months and years will be critical in determining whether these ambitious plans translate into a demonstrably enhanced and resilient UK defense industrial base, capable of meeting current and future security challenges.

Key Sources and Context

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Frequently Asked Questions

Q: How much money is the UK spending on defence technology?
The UK is spending billions of pounds. Over £4 billion is for things like drones and autonomous systems, and nearly £1 billion is for new weapons like lasers.
Q: What kind of new technology is the UK investing in?
The UK is focusing on drone and counter-drone technology, as well as autonomous systems and directed energy weapons. These are advanced tools for defence.
Q: Why is the UK investing so much money now?
The UK wants to keep its country safe because of world events. They also want to be a leader in new defence technology and create jobs.
Q: Are foreign companies building things in the UK?
Yes, a German company called Stark is building a new factory in Swindon to make drones. This shows other countries trust the UK's defence industry.