BAE Systems CEO warns UK defence spending falls short of 3.5% GDP target

Dr Charles Woodburn, chief executive of BAE Systems, has warned that the UK remains too complacent about the risk of foreign attack despite recent defence spending increases. In an exclusive interview, Woodburn described the current threat level as the highest he has encountered in his career, citing Russian submarine activity, cyber attacks, and the ongoing Ukraine conflict as evidence of escalating risks to European security.

While welcoming the UK government's additional £15 billion boost to defence spending announced in June, Woodburn emphasized that current funding remains insufficient to meet the government's commitment to spend 3.5% of GDP on defence by 2035. The recent spending increase will bring defence spending to 2.68% of GDP by 2030, falling short of the 3% minimum that former Defence Secretary John Healey argued was necessary before resigning from his post. Woodburn praised Healey's promotion to Chancellor, expressing confidence that his understanding of defence requirements would support future spending decisions.

Woodburn highlighted the transformation of modern warfare, particularly the growing sophistication of autonomous weapons systems. He noted that Russia and Ukraine have become "incredibly adept" at deploying drones and counter-drone capabilities, and warned that other nations may soon adopt autonomous lethal weapons without maintaining human control protocols that the UK follows. To address these threats, Woodburn advocated for investment in both manned and unmanned capabilities, presenting BAE Systems' Collaborative Combat Aircraft concept—unmanned fighters designed to accompany manned aircraft at 20% of the cost of piloted alternatives.

Woodburn defended the company's response to recent operational requests, including the deployment of the destroyer HMS Dragon to provide air cover near Cyprus. He stated that BAE Systems acts "as quickly as we're able to but at the end of the day you need a signal to move" from the Ministry of Defence. The CEO stressed that adversaries continue to invest in large traditional platforms such as aircraft, ships, and submarines, which BAE believes remain essential alongside emerging unmanned systems to achieve effective deterrence.