UK Budget Crisis Delays Tri-Nation Fighter Jet Program

The landmark project between Japan, Italy, and the U.K. to develop a next-generation fighter jet has hit a major snag, with a critical development contract yet to be signed. The delay stems primarily from uncertainty surrounding the U.K.'s financial commitment as it rethinks its defense strategy amid pressure from the United States for Europe to shoulder more of its security costs.

This hold-up jeopardizes the ambitious 2035 deployment schedule for the new aircraft, a timeline already considered challenging.

Why the UK is Pumping the Brakes

According to sources familiar with the negotiations, the United Kingdom is the main reason for the current stall. Facing a renewed threat from Russia and questions about America's commitment to defending Europe under figures like Donald Trump, Britain is under immense pressure to rebuild its military capabilities after years of post-Cold War reductions.

Last June, the government released a strategic defense review outlining a decade-long pivot to "warfighting readiness." This plan includes new nuclear warheads, nuclear-powered submarines, expanded munitions production, and more troops.

However, funding this overhaul is proving difficult. Estimates suggest that even raising defense spending to the NATO target of 3.5% of GDP by 2035 would not be enough. Military officials have flagged a potential defense funding shortfall of £28 billion ($38 billion) in the coming years, as reported by The Times.

Amid these budget constraints, the U.K.'s defense investment plan, originally due in fall 2025, has been delayed indefinitely. When asked in Parliament on January 12 for a completion date, Chief of Defense Staff Richard Knighton stated, "I do not have a date."

Delayed Contract Risks 2035 Deployment Timeline

The joint development contract cannot be finalized until the U.K. clarifies its investment plan. This contract was intended to be signed by the end of 2025 between the GCAP International Governmental Organisation (GIGO) and Edgewing, a joint venture formed by the project's lead defense contractors.

Without this central agreement, development will proceed under separate, existing contracts between each government and its designated company:

• Japan: Mitsubishi Heavy Industries

• U.K.: BAE Systems

• Italy: Leonardo

This fragmented approach prevents the project from being managed in a unified way by GIGO and Edgewing, requiring more time and effort for coordination between the partners. Japan, in particular, is pushing for the contract to be signed quickly, as its Air Self-Defense Force's F-2 fighters are nearing retirement and need a successor by the 2035 deadline.

The High Stakes of the Global Combat Air Programme

Launched in 2022, the Global Combat Air Programme (GCAP) aims to create a sixth-generation stealth fighter designed to outperform current top-tier aircraft like the American F-35.

This new jet is slated to replace Japan's F-2 fleet as well as the Eurofighter Typhoons used by the British and Italian air forces. Any significant delay puts the strategic military readiness of all three partner nations at risk.