Major £1.5 billion defence contract with British firm ensures world-class equipment testing for UK forces and secures 1,200 jobs
Source: gov.uk (2025-05-22)

UK Armed Forces will benefit from world-class equipment training and testing under a contract which supports more than 1,200 skilled jobs across the UK.

The five-year £1.5 billion contract extension with British defence firm QinetiQ provides test, trial, training and evaluation of defence equipment and capabilities at 16 Ministry of Defence sites. This includes missile firings, test pilot training and delivering live-threat scenarios.

The Long-Term Partnering Agreement will sustain 1,200 UK jobs, including more than 200 in Scotland and 200 in Wales, delivering on the government’s Plan for Change by boosting jobs and prosperity for working people, while keeping the nation safe.

The investment supports an extensive supply chain of 825 companies, including 590 small-to-medium enterprises - demonstrating the government’s commitment to small businesses and their access to the defence market and ensuring defence is an engine for growth in every region and nation of the UK.

The contract will ensure UK Armed Forces equipment remains combat-ready and will support the delivery of future capabilities, including the Global Combat Air Programme’s next-generation combat aircraft.

The Agreement has supported key moments for UK capabilities, including the first launch of a ballistic rocket into space from the UK, the first firing of a high-power laser directed energy weapon – DragonFire – against aerial targets and Europe’s first successful demonstration of teaming a piloted aircraft with an autonomous air vehicle.

Defence Secretary John Healey MP said:

Rigorously tested equipment and the trialling of emerging technologies are key to ensuring our Armed Forces are using combat-ready capabilities on the frontline.

The contract will help keep Britain secure at home and strong abroad, as we drive forward innovation to bolster our national security and support skilled jobs across the UK.

With hundreds of British businesses supported by this investment through QinetiQ’s supply chain, we are demonstrating how defence is an engine for growth across the UK, and delivering on our Plan for Change.

Under the agreement, QinetiQ will invest in modernising the UK’s equipment testing capabilities to keep pace with operational needs. The contract will also support around 30 early careers professionals, providing development opportunities such as digital training in modelling and simulation for engineers.

Earlier this month, QinetiQ hosted Formidable Shield, a NATO joint strike exercise, at the Hebrides range in Scotland – one of the 16 Ministry of Defence sites managed under the Long-Term Partnering Agreement, which was first signed in 2003.

Steve Wadey, Group Chief Executive Officer at QinetiQ, said:

Through the LTPA, we play a vital role helping to protect and enhance the UK’s defence and security. The extension of our partnership with MOD enables us to continue investing to deliver the transformational change in test and evaluation that’s required to ensure our armed forces have operational advantage over disruptive technologies.

We’re seeing increased demand for our services from NATO countries and this LTPA extension positions the UK as a leading centre for T3E, and facilitates the delivery of major equipment platforms as well as future upgrade programmes.