While he welcomed recent government efforts to increase defence spending, he cautioned that significantly more investment is required to reach the government’s stated commitment of spending 3.5% of GDP on defence by 2035.
Dr Woodburn emphasized that the reality of modern warfare has changed profoundly, necessitating a shift in how the UK approaches its defence budget. He pointed to the conflict in Ukraine, where both Russia and Ukraine have become incredibly adept at utilizing autonomous systems, specifically drones and counter-drone technologies. He noted that the UK must fully understand these developments to provide the necessary capabilities to counter such threats and deter future aggression.
Furthermore, he warned that the world is not far from the widespread use of autonomous lethal weapons by nations that may not adhere to the UK's policy of maintaining human control over such systems.
At the Farnborough International Airshow, BAE Systems unveiled a life-size model of an uncrewed fighter jet, the Collaborative Combat Aircraft, in the presence of Defence Secretary Wes Streeting. The company showcased the Brontanax model, explaining that four of these aircraft could accompany a single manned fighter to significantly increase firepower, all while costing only 20% of a traditional piloted aircraft.
Despite this technological leap, Dr Woodburn maintained that traditional battleships and submarines, which BAE has manufactured for decades, remain vital. He argued that the "winning" formula lies in the combination of large, traditional platforms like ships and aircraft with these new, unmanned capabilities.
The CEO addressed the broader climate of complacency, noting that he has been concerned about the threat level for some time, particularly regarding Russia. He recalled being amazed by the activities of Russian submarines and cyber attacks as far back as 2016, when he joined the company.
He suggested that the conflict in Ukraine has made the UK much more aware of the proximity of a hot war in Europe. This comes at a time when the war readiness of the UK's armed forces has faced public scrutiny and criticism.
Senior armed services figures have questioned the state of readiness, with the First Sea Lord, General Sir Gwyn Jenkins, recently stating that the navy is not ready for war. International figures have also weighed in, with US Defence Secretary Pete Hegseth sarcastically referring to the "big bad Royal Navy" and President Donald Trump describing UK aircraft carriers as "toys."
Dr Woodburn also responded to criticisms regarding the mobilization of the destroyer HMS Dragon, which was built by BAE, to provide air cover for Cyprus against threats from Iran and Hezbollah. He insisted that the company responded as soon as the Ministry of Defence requested help, noting that while BAE works to get things in place as quickly as possible, the company requires a clear signal from the government to move.
Regarding the national budget, Dr Woodburn expressed optimism about the appointment of former Defence Secretary John Healey as Chancellor.
Although the current government spending plan, which includes an additional £15bn, will only bring defence spending to 2.68% of GDP by 2030, Dr Woodburn believes Mr. Healey understands the requirements of the sector. He acknowledged that the Chancellor faces complex national finances but views his understanding of defence needs as a very positive development.
The scale of the UK's armed forces has diminished significantly since the end of the Cold War, with the army dropping from 153,000 regular soldiers in 1990 to just 74,000 today. Dr Woodburn suggested that the nature of modern warfare makes the question of how many human soldiers are needed a complex one, especially with the rise of autonomous lethal weaponry.
During the airshow, Prime Minister Andy Burnham sent a video message highlighting the role of defence in his plans to reindustrialize the economy and create thousands of skilled jobs.
Defence Secretary Wes Streeting echoed this, stating that defence will be a central contributor to economic growth. Dr Woodburn expressed his commitment to helping the public understand the industrial and job-related benefits of defence spending, framing it as money well spent. When asked about the moral weight of his work, he stated that the primary goal is deterrence, adding, "Our mission as a business is to protect those who protect us and we take that incredibly seriously."
The UK has been too complacent about the risk of foreign attack, the boss of Europe's biggest defence contractor BAE Systems has warned.
"It's something that we now have to really understand and make sure that we're able to provide the capabilities that can counter that and deter aggression," he said.
