The UK has secured over£20 billion in defence exports this year. This marks the highest annual total since records began more than 40 years ago. Officials say two major contracts drove the growth.
One is a £10 billion deal with Norway for at least five Type 26 frigates. The other is an £8 billion sale of 20 Typhoon fighter jets to Türkiye. The government states these sales will support more than 25,000 jobs in related industries.
Minister for Defence Readiness and Industry Luke Pollard said the deals show defence as an engine for growth. He said they also boost the security of the UK and its allies. The government connects the Norway frigate sale directly to countering Russian threats in the North Atlantic.
The Typhoon sale to Türkiye is framed as strengthening NATO's southern flank. Beyond these, other 2025 sales included 12 C-130 aircraft to Türkiye. A land systems export to Czechia also contributed.
This export record comes as the UK government plans large increases in defence spending.Current policy is to raise spending to 2.6% of GDP by 2027. A longer-term NATO commitment aims for 3.5% of GDP by 2035.
In 2024-25, the UK spent £66 billion, or 2.3% of its national income, on defence. For decades after the Cold War, defence spending fell as a share of GDP. This recent shift plans to reverse that trend.
The UK was overtaken by Germany as the second-largest defence spender in NATO in 2024. The United States spends far more than all European allies combined.
The government promotes defence as a source of skilled jobs and economic growth.However, research suggests the broader economic impact is complex.
A study noted that defence spending focused on research can boost growth. Every £1 invested in innovation-focused defence projects may generate up to £2 in GDP over time. Yet, economic gains are limited because the defence sector is small. It contributes an estimated 0.4% to 0.5% of total UK economic output.
A significant share of spending on equipment also benefits foreign industries through imports. Analysts warn that if defence research funding comes from budgets for health or education, the net effect on growth could be negative.
The government has stated that part of the increased defence funding will come from cuts to the foreign aid budget. One analysis shows core military spending will be 5.5 times the size of the aid budget this year.
Officials stress that the export strategy is about building partnerships.National Armaments Director Rupert Pearce said the goal is to strengthen international alliances while driving growth at home.
The government also highlights its role in the AUKUS pact with Australia and the United States. This submarine cooperation could generate up to £20 billion in future export value. Ministers say they expect more export deals in 2026.
This record year places the UK as a leading global defence exporter. It reflects a strategic shift where sales are tied closely to foreign policy and security goals.