BAE Systems chief executive Charles Woodburn has warned that UK defence spending remains insufficient despite an additional £15 billion announced in June. He said the security environment was the most threatening he had experienced, citing Russia’s military activity, cyber attacks and the closer prospect of war in Europe as reasons for greater investment.

Woodburn said modern warfare has changed significantly, particularly through the use of drones and counter-drone technology in Ukraine. His comments follow former defence secretary John Healey’s resignation over funding concerns, although markets rose on expectations that he may support further defence spending as chancellor; separately, BAE received a £708 million contract extension for next-generation combat-aircraft development.