23 February - 1 March 2026
US-Israeli Strikes on Iran: UK Forces Active in Defensive Role as Region Destabilises
On 28 February, the United States and Israel launched joint strikes against Iranian military sites and leadership targets, including the reported assassination of Supreme Leader Ali Khamenei. Iran retaliated with missile and drone strikes against Israel, Bahrain, Kuwait, Qatar, the UAE, Saudi Arabia and Jordan — countries hosting US military facilities. PM Starmer chaired an emergency COBRA meeting and confirmed UK forces are "active" in the Middle East conducting "coordinated regional defensive operations," with RAF aircraft in the sky and British base protection raised to the highest level. The UK did not participate in the strikes. Starmer, alongside France and Germany, issued a joint E3 statement condemning Iran's retaliatory strikes and calling for de-escalation. The UK held the Security Council presidency for February and chaired the emergency session.
What matters: The implications for UK defence are wide-ranging — from force posture and readiness across the Middle East, to the security of Gulf-based supply routes (Hormuz, Suez), to potential acceleration of air defence and missile programmes already under discussion. The Typhoon squadron deployed to Al Udeid in Qatar in late January is now operationally relevant. Any company with exposure to Middle East supply chains, critical national infrastructure protection, or counter-missile and counter-drone programmes should be assessing the impact now. The political context also matters: Starmer refused US requests to use Diego Garcia and RAF Fairford as strike launchpads — expect this decision to be scrutinised heavily in the coming days.
Source: GOV.UK, 28 Feb (https://www.gov.uk/government/speeches/pm-statement-on-iran-28-february-2026)
POLICY & GOVERNMENT
Treasury Rescues £1bn Leonardo Helicopter Deal
On 27 February, Reuters reported Chancellor Reeves is set to approve up to £1 billion for Leonardo to build 23 medium-lift helicopters at Yeovil — down from 44 originally planned, but enough to save the UK's last military helicopter factory and 3,000 jobs. The deal came down to the wire: Healey reportedly pulled out of a factory visit the day before because the Treasury hadn't signed off, with Leonardo's offer expiring 1 March. Days earlier, hundreds of defence workers protested outside Downing Street, with Unite accusing the Treasury of "dither and delay." The two departments remain locked in negotiations over a multi-billion pound DIP funding shortfall, now delayed over six months.
What matters: The Defence Investment Plan delay is the single biggest uncertainty in UK defence procurement. Companies waiting on DIP-dependent decisions — Skynet, Typhoon, A400M — and trade bodies making the case for industrial commitment should watch the Spring Statement on 3 March closely.
Source: Reuters, 27 Feb (https://uk.finance.yahoo.com/news/uk-still-considering-leonardo-helicopter-134353438.html)
CONTRACTS & AWARDS
£113m DLIS Contract Completes £466m Logistics Digitalisation Programme
The NAD Group awarded £113 million to Digital Allies (PA Consulting and Accenture) for Defence Logistics Information Services — the final contract under the Business Modernisation for Support programme. DLIS will replace ten legacy logistics systems with a single digital platform. Total BMfS programme value: £466 million, creating up to 235 UK jobs.
What matters: BMfS is now entering delivery, which means subcontracting and integration work will flow through PA and Accenture's supply chains. The programme also underlines the NAD Group's growing role as a procurement authority — a route to market worth understanding.
Source: GOV.UK, 25 Feb (https://www.gov.uk/government/news/final-piece-in-place-for-defence-support-transformation)
INDUSTRY MOVES
Babcock Marks Double Type 31 Milestone at Rosyth
On 24 February, Babcock cut steel on HMS Bulldog (ship four) and rolled out HMS Active (ship two) from the assembly hall on the same day. Four of five Inspiration-class frigates are now under construction. The Arrowhead 140 design continues to win export orders in Poland and Indonesia.
What matters: The production drumbeat is accelerating — HMS Campbeltown's keel laying is expected later this year. The Arrowhead 140's export success also opens supply chain opportunities on Polish and Indonesian builds.
Source: Royal Navy, 25 Feb (https://www.royalnavy.mod.uk/news/2026/february/25/20260225-future-frigate-force-forges-ahead-with-two-milestones-in-one-day)
INTERNATIONAL
HMS Anson Arrives in Australia for First AUKUS Submarine Maintenance
HMS Anson docked at HMAS Stirling on 22 February after an 8,000-nautical-mile unsupported transit. Around 100 UK, US and Australian personnel are conducting the first-ever maintenance of a Royal Navy nuclear submarine on Australian soil. The visit also includes trials of Australia's Speartooth uncrewed underwater vehicle with the UK SSN and anti-submarine warfare AI algorithms on the P-8A Poseidon. This builds toward Submarine Rotational Force–West at Stirling from 2027.
What matters: Fifteen Australian companies supported the visit, with five manufacturing components for installation on Anson. AUKUS is moving from policy to industrial reality — relevant for submarine supply chain firms and for anyone tracking how trilateral procurement frameworks develop.
Source: GOV.UK, 23 Feb (https://www.gov.uk/government/news/uk-submarine-arrives-in-australia-in-aukus-partnership-first)
PROCUREMENT PIPELINE
DARC Deep Space Radar Pre-Application Consultation Open
The MOD launched a statutory consultation on 23 February for the Deep Space Advanced Radar Capability at Cawdor Barracks, Pembrokeshire — 27 radar antenna to track objects up to 36,000 km from Earth as part of the trilateral AUKUS programme. Consultation closes 23 March, with a formal planning application to follow.
What matters: Long-term opportunities across construction, radar systems, IT and facilities management in Pembrokeshire. Planning application expected Q2 2026. Also a live example of defence investment intersecting with community engagement and planning politics — the local PARC Against DARC campaign remains active.
Source: GOV.UK, 23 Feb (https://www.gov.uk/government/consultations/deep-space-advanced-radar-capability-pre-application-consultation)
COMING UP
3 March — Spring Statement. Watch for defence spending signals and DIP timing — the Iran crisis may sharpen the political argument for accelerating the Defence Investment Plan.
25–26 March — DPRTE 2026, Farnborough. UK's premier defence procurement event. Two days, MOD-supported. Free for public sector.
23 March — DARC consultation closes.