UK urged to pick Airbus over Lockheed for £2.4bn satellite 2026

Daniel Harrolds
UK urged to pick Airbus over Lockheed for £2.4bn satellite
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The £2.4bn military satellite contract for the UK Ministry of Defence’s Skynet 6 system has become a major test of Andy Burnham’s pledge to use public procurement to back British industry. Labour’s largest union backer, Unite, is urging the government to award the deal to European manufacturer Airbus over US rival Lockheed Martin, warning that up to 600 jobs at Airbus facilities in Stevenage and Portsmouth could be at risk.

The bid battle between Airbus and Lockheed Martin

The Skynet 6 wideband satellite system (WSS) will involve two geostationary satellites carrying sensitive military data. Airbus, which designs and builds satellites in the UK, has a strong existing workforce, while Lockheed Martin has promised to create 500 direct jobs in north-east England and another 1,500 in the broader supply chain if it wins the contract. Critics, however, argue that Lockheed’s bid relies on American intellectual property rather than UK-developed technology.


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Why Unite is backing Airbus

Sharon Graham, general secretary of the Unite union, described choosing a US company as a “massive mistake”. She emphasised that the contract is an early test of how Burnham’s “backing Britain” pledge will work in practice. The Labour MP for Stevenage, Kevin Bonavia, is also putting pressure on the government to secure existing jobs at Airbus.

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Lockheed Martin’s counteroffer

The US company has pledged to keep any intellectual property it develops in the UK and has already invested in a research partnership with Northumbria University. Lockheed also highlights export potential from the UK to other countries, as well as integration with the US military. However, union leaders fear that British technology and sovereignty could be compromised.

Comparison of the two bids

Factor Airbus Lockheed Martin
Headquarters France (UK design & build centres) USA
Jobs promised Protects ~600 existing UK jobs 500 direct + 1,500 supply chain jobs
IP ownership UK-developed technology Pledges to keep UK-developed IP
Export potential Limited under current bid Key part of offer
Integration with US military Independent Seamless with US systems

Key takeaways

  • Airbus safeguards existing skilled jobs in Stevenage and Portsmouth.
  • Lockheed Martin offers a larger total job creation number but relies on US IP and supply chains.
  • The decision will test Labour’s commitment to British industry under the new defence secretary, Wes Streeting.
  • Relations with the Trump administration add a geopolitical dimension to the contract award.

FAQ

What is the Skynet 6 satellite contract?

Skynet 6 is a £2.4bn programme to build two geostationary military communications satellites for the UK Ministry of Defence, replacing the current Skynet 5 system.

Why are union leaders opposing the Lockheed Martin bid?

Unite fears up to 600 jobs at Airbus’s UK facilities could be lost, and that awarding the contract to a US company would undermine British technological sovereignty and the government’s commitment to domestic industry.

How many jobs does Lockheed Martin promise to create in the UK?

Lockheed has pledged 500 direct jobs in north-east England (including an assembly facility in Durham) plus 1,500 jobs across the wider supply chain.

What role does Andy Burnham play in this decision?

Andy Burnham, as Mayor of Greater Manchester and a key Labour figure, has advocated using public procurement to support British industry. The contract is seen as a test of that pledge, though the final decision lies with the new defence secretary Wes Streeting.

With the defence secretary now involved, the outcome of this contract will be closely watched as an indicator of the UK’s defence procurement direction under a Labour government and its relationship with the US. The decision is expected within the coming months.

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Daniel Harrolds

Author

Daniel Harrolds

With a career spanning four decades, Daniel is almost a library in the field of precious metals investing and Gold IRAs. His insightful strategies and pragmatic results-oriented approach make him a resource in safeguarding wealth, and financial foresight.


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