BAE Systems’ FalconWorks facility at Warton has been held up in the House of Commons as a leading example of how research and development should be embedded within UK defence procurement, as ministers confirmed a £400 million annual budget for a new national defence innovation programme.
Fylde MP Andrew Snowden raised the work of FalconWorks during Defence Procurement Questions, drawing Parliament’s attention to the facility’s role in rapidly redesigning and redeploying air systems informed by live operational experience in Ukraine. Mr Snowden pressed the government to ensure that R&D investment is built into procurement from the outset, enabling British industry to innovate at pace and maintain strategic advantage as threats evolve.
Responding, Defence Minister Luke Pollard praised FalconWorks and BAE Systems for their innovation, confirming the establishment of UK Defence Innovation with a £400 million annual budget to support new technologies and dual-use capability. He also confirmed that 10 per cent of the equipment budget will be directed towards novel technologies – a significant signal of intent for the UK’s defence supply chain.
A Hub for Rapid Capability Development
Located within the Enterprise Zone at Warton, FalconWorks is BAE Systems’ centre for advanced research and technology development within the Air Sector. It operates as a hub where ideas from across the wider Air Sector can be developed, tested and turned into operational capability – with a particular focus on the speed of innovation that modern conflict now demands.
The facility works across advanced air systems including uncrewed technologies, and through new collaborations is helping to expand the UK’s expertise in rapidly adapting and deploying cutting-edge systems. Its ability to translate lessons from active conflicts into improved operational capability in near real-time has been highlighted as a critical differentiator in an increasingly unpredictable security environment.
With around 2,000 employees across its UK operations, FalconWorks represents a significant node in the national defence innovation ecosystem, as well as a major employer of highly skilled workers across Fylde and Lancashire.
Supply Chain Implications
For the UK defence supply chain, the parliamentary exchange carries clear significance. The government’s confirmation of a ring-fenced innovation budget and a 10 per cent novel technology allocation within the equipment programme signals growing appetite for procurement models that reward R&D capability and agility – not just volume production.
Facilities like FalconWorks, which bridge research and operational deployment, are well placed to benefit from this shift. For suppliers across the chain, the message from Westminster is increasingly clear: the ability to innovate quickly and integrate lessons from live operations will be a defining factor in future contract opportunities.
Mr Snowden said: “FalconWorks is a clear example of why Fylde matters to Britain’s defence future. It sits at the forefront of modern air systems development, working in a world where threats and technology are changing faster than ever. The ability to learn quickly, adapt systems and redeploy capability is now essential.”
He added that Warton’s heritage, workforce and infrastructure position it to play a central role in UK security for decades to come, and confirmed he would continue pushing for investment that backs local industry and the people who make it a success.
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