F35 PROGRAMME UPDATE

The UK F-35 Lightning II Programme: Strategic Status & Industrial Impact

1. Summary

The F-35 Lightning II represents the United Kingdom’s most significant defence procurement of the 21st century. As the sole Tier 1 partner to the United States, the UK holds a unique status that has secured approximately 15% of the global manufacturing workshare for British industry. This report outlines the program's history, its critical economic contribution—forecasted at £45.2 billion GVA—and the specific role of the South East aerospace cluster in delivering the aircraft’s "nervous system." While industrially robust, the program faces operational headwinds, with significant delays to software upgrades pushing the integration of sovereign UK weapons into the 2030s.

2. Strategic Context and Fleet Status

2.1 Origins and Tier 1 Partnership

The UK joined the Joint Strike Fighter (JSF) program in 2001, investing $2 billion in the System Development and Demonstration (SDD) phase. This "Tier 1" investment was driven by two goals: replacing the Sea Harrier/Harrier GR9 fleets and securing high-value work for UK industry.

• Sovereignty: To maintain "operational sovereignty," the UK secured a unique arrangement via the Australia Canada United Kingdom Reprogramming Laboratory (ACURL). This allows the UK to generate its own Mission Data Files (threat libraries), ensuring the RAF and Royal Navy are not solely dependent on US data for combat operations.
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2.2 Current Fleet and Procurement

As of late 2025, the UK operates a fleet of 37 F-35B (Short Take-Off and Vertical Landing) aircraft, based at RAF Marham and deployed aboard Queen Elizabeth-class carriers.

• Squadrons:
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• 617 Sqn (Dambusters): Operational frontline unit.
• 207 Sqn (OCU): Operational Conversion Unit for training.
• 809 NAS: Currently standing up as the second frontline unit, though full infrastructure capability is delayed until 2029.5

• Delivery Delays: Deliveries of the remaining Tranche 1 aircraft have slipped to 2026 due to software stability issues with the "Technology Refresh 3" (TR-3) upgrade.

2.3 The Strategic Pivot: F-35A and the Nuclear Mission

In June 2025, the UK confirmed a major shift in strategy: the next procurement phase will include a mix of F-35B and F-35A (Conventional Take-Off) variants. The procurement of 12 F-35As is driven by cost efficiency (the 'A' is ~25% cheaper) and the requirement to rejoin NATO’s nuclear sharing mission, carrying the B61-12 tactical nuclear bomb.5

3. Financial and Industrial Impact

3.1 National Economic Contribution

The F-35 program is structured not as a traditional "offset" deal, but as a global supply chain integration.

• Gross Value Added (GVA): The program is projected to contribute £45.2 billion to the UK economy between 2007 and 2046.8
• Employment: It supports over 20,000 highly skilled jobs across the UK.7
• Export Revenue: The UK Treasury receives a levy/royalty on every F-35 sold globally (including to nations like Japan, Germany, and Finland), allowing the government to recoup its initial development costs over the program's life.

3.2 Key UK Components (Global Supply)

The UK builds 15% by value of every F-35:

• BAE Systems (Samlesbury): Manufactures the aft fuselage and empennage (tails) for every aircraft globally.
• Rolls-Royce (Bristol): Produces the LiftSystem (LiftFan and 3-Bearing Swivel Module), the unique propulsion technology that allows the F-35B to hover.9
• Martin-Baker (Denham): Supplies the US16E ejection seat, the sole escape system used by all F-35 variants worldwide.10

4. Regional Focus: The South East Aerospace Cluster

While airframes are built in the North, the South East of

England (spanning Hampshire, Sussex, and Kent) provides the aircraft's critical electronic, sensor, and release systems. This region captures high-margin, high-tech engineering work.

4.1 Key South East Suppliers & Technologies

BAE Systems - Rochester, Kent

Active Inceptor Systems: The high-tech "side stick" and throttle that provide haptic feedback to the pilot. Also the Vehicle Management Computer.

Eaton - Titchfield, Hants

Ground Maintenance Motor Pump (GMMP): A dual-function hydraulic/electric pump used for ground ops and emergency in-flight power.

L3Harris - Brighton, Sussex

Pneumatic Carriage & Release: Uses compressed air rather than explosives to eject weapons. Cleaner, quieter, and stealthier than legacy systems.

Leonardo UK - Southampton, Hants

Infrared Detectors: Supplies the Cadmium Mercury Telluride (CMT) arrays for the Electro-Optical Targeting System (EOTS), giving pilots 360° thermal vision.

Collins Aerospace - Crawley, Sussex

Training Systems: Provides visual systems for the Full Mission Simulators (FMS), essential for pilot currency given high flight-hour costs.

This cluster benefits from proximity to the Farnborough Aerospace Consortium and key defence research sites, embedding the region into the global F-35 sustainment network.