The UK government on Monday, Dec. 15, 2025, announced a rapid £140 million investment in drone and counter-drone technologies, marking the first year of operations for the newly formed UK Defence Innovation (UKDI) body, according to the Ministry of Defence.
UKDI, launched in July by Defence Secretary John Healey, will channel more than £142 million this year into uncrewed systems and anti-drone capabilities, including around £30 million dedicated to counter-drone technologies aimed at protecting the UK and its allies amid what the government described as increasing Russian-linked drone activity across Europe. The organisation operates with a ring-fenced annual budget of at least £400 million and uses accelerated contracting methods to help companies rapidly scale innovative prototypes.
The investment supports a broad domestic base, including 20 small and medium-sized enterprises, 11 micro-SMEs and two academic institutions, and is aligned with lessons identified in the Strategic Defence Review following the war in Ukraine. Officials said the funding is intended to strengthen NATO-level innovation, improve force protection and stimulate economic growth in the UK defence sector.
Key projects announced include:
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More than £25 million for the Royal Navy’s uncrewed AI submarine Excalibur, part of the Atlantic Bastion programme.
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£20 million to expand laser weapon development alongside the DragonFire system.
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£7.5 million for a full-size autonomous uncrewed helicopter, with flight trials underway.
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£12 million for an air-launched collaborative uncrewed air vehicle.
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£5 million in seed funding for land-based autonomous platforms supporting Army aviation.
Healey said the funding surge reflects the urgency of adapting to modern threats and ensuring Britain’s armed forces remain at the forefront of defence innovation, while positioning the UK as a leading environment for defence industry growth.
