Major Fylde coast jobs boost at BAE Systems Warton amid massive £708m defence industry contract extension
This is £708m which will provide a significant boost to BAE Systems, including here in Lancashire at BAE Systems’ Samlesbury and Warton bases.
The Ministry of Defence (MoD) has awarded contract extension worth £708 million to BAE Systems.
The contract is for the development of critical sixth-generation sovereign combat air technologies underpinning the UK’s role in the Global Combat Air Programme (GCAP). Under the contract, BAE Systems will deliver UK tech and develop capability, including software, digital networks, digital engineering and physical infrastructure.
The Company will also develop national capability beyond the core sixth-generation aircraft, known as Tempest in the UK. This involves operational analysis and concept development of the broader Future Combat Air System, including integrating uncrewed air systems, advanced networks and the latest weapon technologies.


Both BAE Systems’ Samlesbury and Warton bases are involved in the development, build and testing of Tempest, with final testing due to take place in the next few years. The latest contract extension supports both jobs and economic resilience across Lancashire communities.
Team Tempest currently supports 4,500 people working across industry and the MOD, including 3,000 apprentices and graduates recruited since 2022, 750 members in its Early Careers Network, and a supply chain of around 600 UK suppliers.
The funding extension continues substantial progress made since 2018, with some 4,500 people researching, evaluating and developing a range of future combat air capabilities designed to keep the UK ahead of threats and enabling the next generation of combat air systems to be delivered more rapidly and cost-effectively than previous programmes.


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‘World-leading combat air capability’
Richard Berthon, Director Future Combat Air, Ministry of Defence, said: “This £708 million investment demonstrates the UK’s continued commitment to maintaining a world-leading combat air capability and a freedom of action which ensures our Armed Forces remain equipped to meet future threats.”
Declan Holland, Future Combat Air Systems Managing Director, BAE Systems’ Air sector, said: “Our contract builds on the strong progress already achieved across the UK’s defence ecosystem, bringing together industry and academic partners to accelerate next-generation technologies.
“Through this work, we’re delivering tangible outcomes for the Global Combat Air Programme by strengthening UK capability, supporting high-value innovation and contributing to long-term economic growth.”
