Published: 5 February 2026 BritishAmerican Business Analysis of Progress Made to Strengthen U.S.-UK Defence Collaboration

In February 2025, BAB in collaboration with leading US primes we proudly represent—GE Aerospace, Boeing, RTX, Lockheed Martin, L-3 Harris, and Northrop Grumman—published a white paper titled Stronger Together: How US-UK Cooperation Contributes to the Revival of the UK’s Defence Industrial Base. The paper offers a series of arguments and evidence of how deeply embedded U.S. defence companies are in the UK’s defence ecosystem, and how the UK’s integration with the U.S. companies and the U.S. defence industrial base creates jobs and growth, enhances capabilities, strengthens supply chain networks, transforms the domestic skills base, and drives research and innovation to the benefit of the whole sector and UK economy.

The paper provides the UK government with six actionable recommendations to leverage this unique transatlantic partnership as the UK modernizes its defence sector. The recommendations cover focusing procurement and development efforts on interoperable systems; embedding resilience in defense strategy through stockpile integration and resource dispersal; maximising the potential of AUKUS; promoting the positive impact of U.S. industry to the UK defence sector; strengthening U.S.-UK industry engagement through formal mechanisms; and investing in skills transfer and workforce development.

To mark the one-year anniversary of the paper’s publication, the purpose of this BAB analysis is to provide a snapshot of progress made by the UK to address the paper’s recommendations, identify some important next steps to fulfill the recommendations, and encourage further discussion between the UK government and industry on enhancing collaboration. Our analysis draws from the commitments made in the UK’s 2025 Defence Industrial Strategy (DIS) and Strategic Defence Review (SDR) to measure progress and identify next steps.

The table included here presents our analysis. Overall, BAB is pleased with the progress made and welcomes action taken by the Ministry of Defence to streamline the procurement process, mitigate supply chain vulnerabilities through stockpile development, and advance collaboration on AUKUS. The momentum for progress needs to be continued by further focusing on formalizing U.S.-UK industry engagement, creating opportunities for skills transfer and workforce development in 2026, and ensuring that a proposed offset regime does not deter investment by U.S. companies that already invest significantly in the UK.

We look forward to continuing to partner with the UK government and industry to act on the paper’s recommendations, while identifying further opportunities to deepen collaboration to support the resilience, growth and operational readiness of the UK’s defence sector by leveraging U.S. industry.

BAB Recommendation	Progress Made (Examples)	Next Steps
Prioritise Interoperability & Interchangeability Focus procurement and development efforts on interoperable systems that enhance export success, operational alignment with allies, and global competitiveness.	MOD procured F-35A fighter jets from the U.S. to support interoperability with NATO’s airborne nuclear mission. MOD introduced a segmented procurement approach to speed up acquisition and be more market aligned, rather than having bespoke requirements. MOD secured a £400 million contract with Google Cloud to develop a sovereign cloud capability to help the MOD share secure information with the U.S., helping create a digitally integrated force interoperable with allies.	Focus defence development efforts on AUKUS Pillar II technology priorities. Establish the NATO interoperability roadmap Leverage the Defence Uncrewed Systems Centre and Defence AI Investment Fund, once established, to develop interoperable systems in partnership with the U.S., including autonomous systems.
Embed Resilience in Strategy Incorporate stockpile integration and resource dispersal into defence planning to mitigate supply chain vulnerabilities and strengthen collective security.	MOD identified at least 13 sites for factories to manufacture munitions, contributing to an “always on” munitions pipeline. DBT released a Critical Minerals Strategy, which includes focus on collaborating with allies to stockpile critical minerals to diversify supply. U.S.-UK collaborated on a hypersonic weapons propulsion system to bolster the UK’s hypersonic weapons capability.	Introduce a new Supplier Resilience Maturity (Self) Assessment framework and tool. Ensure a UK offsets policy, if adopted, directs secondary benefits to bolster stockpile integration with allies including the U.S..
Maximise AUKUS Potential Build on momentum of initiatives like ITAR exemptions by implementing dedicated trilateral funding to foster innovation and sustain collaboration in advanced defence technologies.	UK-Australia Geelong Treaty signed. MOD announced over £6 billion investment in submarine production. Committed to building up to 12 SSN-AUKUS submarines. MOD collaborated with Australia to decide Pillar II technology priorities, which are pending U.S. agreement.	Establish trilateral funding mechanisms, such as similar to NATO’s Innovation Fund but incorporating private capital to increase the volume of capital. Re-establish a nuclear fuel cycle for reactor fuel for defence purposes. Push for trilateral agreement on an AUKUS visa, similar to the NATO-2 visa.
Promote the Positive Economic Impact The Defence Industrial Strategy should recognise the economic and industrial contributions of U.S.-headquartered companies to the UK, including their role in giving the UK defence sector access and scale to global programmes of record.	DIS states the UK will maximise industrial and technological collaboration with the U.S.. DIS notes the importance of defence industrial collaboration with the U.S. to securing military capabilities including the F-35, Rivet Joint reconnaissance aircraft, P-8 Poseidon aircraft, and Javelin weapon system.	Identify areas for collaboration with U.S. industry in the Defense Investment Plan, such as long-range missile production, autonomous systems, and nuclear technology.
Strengthen U.S.-UK Industry Engagement Establish formalised structures and mechanisms to deepen U.S.-UK collaboration and align strategies for future priorities.	MOD established the Defence Industrial Joint Council (DIJC).	Establish a working group through the DIJC for collaboration with U.S. industry.
Invest in Skills Transfer & Workforce Development Prioritise skills transfer and workforce development within U.S.-UK defence collaboration to meet the growing demand for specialised talent and sustain a competitive, future-ready workforce.	Announcement of Defence Technical Excellence Colleges (DTECs). Announcement of a Defence Skills Passport. Announcement of regional STEM initiatives.	Consult with U.S. industry on the design of training and curriculum at DTECs. Consult with U.S. industry on the placement and design of regional STEM initiatives.

About BritishAmerican Business

BritishAmerican Business is the leading transatlantic trade association incorporating the British-American Chamber of Commerce in the US and the American Chamber of Commerce in the UK.

We are committed to strengthening the economic corridor between the United States and the United Kingdom by supporting policies and actions that protect and enhance the environment for transatlantic trade and investment on behalf of our members.

We convene and serve a growing network of companies and business leaders through networking opportunities, bespoke programming and marketing platforms. We actively promote trade and investment and support those who make the transatlantic corridor part of their business growth ambition.