Britain prepares £6 billion funding package for sixth-generation fighter jet programme

Britain is preparing to allocate around £6 billion, or more than $8 billion, for the development of a sixth-generation stealth fighter jet, the Financial Times reported, citing sources familiar with the matter.

Britain aims to develop the aircraft jointly with Italy and Japan under the long-term Global Combat Air Programme (GCAP).

The programme covers the design and development of the next-generation fighter jet. According to the newspaper, a short-term financing agreement signed in March is due to expire at the end of June.

Two sources cited by the Financial Times said a new funding agreement for GCAP could be signed by London as part of a broader defence spending package.

However, the investment agreement for the fighter jet programme still requires approval from the UK Treasury.

Britain’s BAE Systems, Italy’s Leonardo and Japan Aircraft Industrial Enhancement Company are participating in the aircraft’s development. The companies established a joint venture under GCAP in December 2024.

The programme aims to bring the new-generation fighter jets into service by 2035, challenging US dominance in military technology.

The Financial Times said funding disputes had caused concern and unease in Japan that the programme could stall.

A Japanese official said Tokyo was worried that Japanese Prime Minister Sanae Takaichi’s planned visit to Britain could be cancelled.

The official said the uncertainty stemmed from questions over whether Keir Starmer would remain in office as prime minister.

Bloomberg previously reported that Starmer’s position had weakened after the Labour Party’s poor performance in local elections. According to the agency, more than 20% of Labour lawmakers want Starmer to step down.

One of the most significant blows to Starmer, Bloomberg reported, came during a meeting with Energy Secretary Ed Miliband, a longtime ally.

Sources said Miliband urged the prime minister to set a timetable for his resignation.

The report also said deteriorating economic indicators and weakening market confidence in Britain had intensified political pressure. Yields on Britain’s 30-year government bonds rose above 5.8%, reaching their highest level in roughly three decades.

Britain unveiled the concept for its sixth-generation stealth fighter jet in July 2024. The aircraft is scheduled to enter service in 2035.

The new model is expected to feature a wider wingspan, which is intended to improve aerodynamic performance.