The UK's Ministry of Defence (MOD) is gradually shifting its spending from the US to Europe, according to research from Tussell.

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The RAF took delivery of two new F-35B Lightning jets – flown in from Texas and built by Lockheed Martin – at its base in Marham, Norfolk this week. But research from Tussell says there is now a shift away from US-based firms when it comes to defense spending (click to enlarge) – Pic: Crown Copyright

Tussell [2]found that MOD expenditure with private contractors grew 31 percent between 2019 and 2024 - 5 percent in real terms. Between Q1 2019 and Q4 2024, £52.5 billion ($70 billion) was paid out to private sector contractors.

Approximately half of the spending by the MOD (and its ALB – Arms Length Bodies) was with firms headquartered in the UK, such as Rolls-Royce and BAE Systems. The lion's share of the rest went to US-based companies like Boeing and Lockheed Martin.

However, from 2022, there was a notable shift in spending away from the US-based firms, while European suppliers have experienced growth. The share of French firms, for example, has increased from five percent to 12 percent over the last five years.

The effect of decisions and announcements by the current US administration, including [3]tariffs , has yet to show up in the figures. Therefore, the shift away from US-based defense contractors could become even more pronounced as the MOD considers its dependencies.

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Tussell states: "The evidence paints a picture of a defense procurement landscape that is slowly - but surely - expanding."

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In real terms, procurement spending grew by only 5 percent, but the researchers noted "a clear shift toward greater European involvement."

As a proportion of financial outlay, Facilities Management (FM) and Construction increased markedly over the last few years, something Tussell attributed mainly to the MOD's £1.6 billion ($2.12 billion) [7]Future Defence Infrastructure Services (FDIS) program, announced in 2021 and set to run for seven years.

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Digital and Consultancy accounted for 14 percent of MOD spending in 2024.

Tussell also found that since 2022, the US Department of Defense has invoiced the MOD approximately £700 million ($930 million) for a combination of projects, including the F-35 Lightning program. The F-35 program has had somewhat of a chequered history over the years, with software problems causing headaches leading up to the [9]delivery of the first aircraft in the UK.

Video footage of an F-35B [10]falling off the end of a British aircraft carrier following a botched take-off was circulated online in 2021. The US Navy has [11]lost a pair of fighter jets from an aircraft carrier in the last few weeks.

[12]Software troubles delay F-35 fighter jet deliveries ... again

[13]US Air Force says AI-controlled F-16 fighter jet has been dogfighting with humans

[14]Wow, so they actually let AI fly an F-16 fighter jet

[15]British arms dealer BAE behind F-35 electronics first in line for US CHIPS funds

[16]Leaked footage shows British F-35B falling off HMS Queen Elizabeth and pilot's death-defying ejection

Earlier this year, rumors circulated that the F-35 jets featured a "kill switch" allowing the US to disable the aircraft remotely. While such a scenario is unlikely, the aircraft does rely on US software, access to which could be blocked.

Earlier this year, Portugal [17]dropped plans for procuring F-35 fighters, citing US political uncertainty.

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The MOD will be considering its supply chain and where to spend its budget as UK authorities get to grips with a possible new world order ushered in by the current US administration. Public and private sector organizations alike are being forced to reconsider their dependencies on the US.

The recent trend of spending more with European-based companies than US-based firms could accelerate in future years, where workable alternatives to US solutions can be found. ®

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[1] https://regmedia.co.uk/2025/05/09/new_f_35bs_raf_markham_b.jpg

[2] https://www.tussell.com/insights/defence-procurement-tracker

[3] https://search.theregister.com/?q=%22world+war+fee%22

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aB94HgsD13qlhmT_Qvm8TwAAAA4&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

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[7] https://www.gov.uk/government/news/16-billion-investment-to-upgrade-uk-defence-estate

[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aB94HgsD13qlhmT_Qvm8TwAAAA4&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[9] https://www.theregister.com/2016/06/30/first_f_35b_joint_strike_fighter_lands_uk/

[10] https://www.theregister.com/2021/11/30/f35b_ejection_hms_queen_elizabeth_video/

[11] https://www.reuters.com/world/us/another-us-fighter-jet-falls-into-sea-truman-aircraft-carrier-us-officials-say-2025-05-07/

[12] https://www.theregister.com/2024/01/24/software_delay_f35_fighter/

[13] https://www.theregister.com/2024/04/18/darpa_f16_flight/

[14] https://www.theregister.com/2023/02/14/ai_air_force_f16/

[15] https://www.theregister.com/2023/12/11/bae_chips_funds_f35/

[16] https://www.theregister.com/2021/11/30/f35b_ejection_hms_queen_elizabeth_video/

[17] https://theaviationist.com/2025/03/13/portugal-f-35-plans/

[18] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aB94HgsD13qlhmT_Qvm8TwAAAA4&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[19] https://whitepapers.theregister.com/