investment in the aircraft from current and potential customers gives us confidence that Typhoon production in the UK will take us into the next decade – we’re working hard to secure these orders which are critical to secure the UK’s long-term sovereign combat air capability.”
The Memorandum of Understanding announced by the UK and Turkey in July sets the stage for what would be the first Typhoon export order secured by the UK since 2017.
Sharon Graham
of the early work taking place at BAE Systems’ Lancashire facilities.
Speaking to Lancashire Business View before the Turkish announcement, a BAE spokesperson said: “We are experienced at responding to the changing demands of the Typhoon programme to ensure we retain our specialist skills.
“The strong level of interest, commitment and
And it comes as the government’s defence secretary John Healey makes the drive for new defence export deals a high priority – which looks to be more good news for Lancashire.
The Ministry of Defence took on responsibility for defence exports at the end of July in a significant step of delivery for the UK’s Strategic Defence Review.
John Healey said: “It shows this government’s determination to secure new defence deals, building on our relationships abroad to deliver for British working people.”
Latest figures show UK defence exports were valued at £14.5bn in just a 12-month period.
GOING STRONG IN THE AIR
BAE Systems upgraded its sales and underlying EBIT guidance for the full year at the end of July following strong interim results helped by the “significant success” of its combat air business.
In the six months to June 30, 2025, the defence giant grew sales by 11 per cent to £14.6bn and underlying EBIT grew by 13 per cent to £1.5bn on a constant currency basis.
The group says that sales are now expected to increase in the range of eight per cent to ten per cent with underlying EBIT expected to rise in the range of nine per cent to 11 per cent.
BAE, which employs around 12,000 people at its Warton and Samlesbury sites in Lancashire, says it has experienced “significant success” across its combat air business in the region.
Its air sector workforce in Lancashire provides vital frontline combat air capabilities to UK and international customers, including providing around-the-clock support to the RAF’s Typhoon fleets, as well as leading the UK’s industrial contribution to the Global Combat Air Programme (GCAP) to deliver a next generation combat aircraft.
Announcing the figures, Charles Woodburn, BAE Systems chief executive, said: “Our teams have delivered another strong operational and financial performance in the first half of the year, giving us the confidence to upgrade our guidance.
“In this heightened global threat environment, we continue to deliver mission critical capabilities to armed forces around the world and invest in our people, technologies and facilities to drive the improved efficiency, capacity and agility needed to meet the increasing demand for our highly relevant products and services.
“The breadth and depth of our geographic and product portfolio, together with our trusted track
Charles Woodburn LANCASHIREBUSINES SV
IEW.CO.UK
record of delivery, strengthen our confidence in the positive momentum of our business.”
Highlights for the first half include the continuation of concept and assessment work on GCAP, with a further £1bn of funding on the UK assessment phase contract.
BAE Systems also launched Edgewing, a joint venture with its international industry partners in Italy and Japan on GCAP, which will be accountable for the design and development of the next generation combat aircraft under the programme.
And in another significant landmark, the design of the Combat Air Flying Demonstrator has been unveiled – with Lancashire planemakers playing a leading role in delivering the aircraft.
Designed to test a wide range of new technologies, including the integration of stealth compatible features, it is a crucial part of the work to develop manufacturing processes and de-risk the aircraft that will be delivered through GCAP.
The group’s order intake of £13.2bn remained high across all sectors and it closed the period with an order backlog of £75.4bn.
Miranda Barker OBE Chief executive
@elancschamber
SMEs FACE CHILL WINDS
THIS AUTUMN As autumn rolls around again, businesses are looking with alarm towards the Budget.
This government does not have a good record for Lancashire SMEs. From autumn 2024 it’s been all take, taxing basic employment costs, three ways from Sunday, sounding such alarm bells with employment law changes that businesses are positively deterred from hiring.
This does not work well for Lancashire, driving our profitable businesses to despair and thoughts for some of selling up and shipping out.
The situation is now dire, the government has gone from a ‘nudge strategy’, making a positive argument for mayoral uptake, to an extreme stance now so partisan in its investment for mayoral areas only as to be seriously damaging to the UK’s broader economic prospects.
And it’s not as if now is a time the government can afford to play fast and loose with business success. One would think ministers would do anything to drive up economic growth and manage that budgetary black hole.
But no, horrifyingly we are seeing a moment when, for the first time this century (yes, seriously!), there is no active universal UK wide, locally dispersed funding for business support!
Instead, we see investment elsewhere – Manchester, Liverpool – and the Lancashire business community left to fend for itself, town-centric, non-mayoral, manufacturing some of the best global goods on offer, but looking to the autumn with something a whole lot worse than trepidation.
Politically neutral, the chamber doesn’t mind what colour politicians are locally, regionally or nationally, whether red, blue, green or turquoise, it matters not. But what we do need is for them to come out swinging.
Call us on 01254 356400 or visit
chamberelancs.co.uk
NEW CATEGORIES FOR 2026
AI AND TECH INNOVATION
CREATIVE BUSINESS DEAL OF THE YEAR
Deadline: 5 December 2025
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