UK injects millions of pounds to boost drone warfare

January 22, 2026, by Fatima Bahtić

The UK government has decided to invest millions of pounds in strengthening its capabilities in drone warfare and counter‑drone technology.

Through the newly formed UK Defence Innovation (UKDI) initiative, the plan is to inject over £142 million into rapid investment in drones and anti-drone weapons.

UKDI was launched by Defense Secretary John Healey MP in July 2025, to be the focal point for innovation within the Ministry of Defense, backed by a ringfenced annual budget of at least £400 million. It takes a new approach, using different ways of contracting, to enable UK companies to scale up innovative prototypes rapidly.

The drone investment included twenty British SMEs, eleven British micro-SMEs, and two British academic institutions.

“After years of hollowing out and underfunding, I am determined to put Britain’s Armed Forces, and British businesses, at the leading edge of defence innovation,” Healey said.

“In a new era of threat, this rapid investment will make the UK secure at home and strong abroad, while making defence an engine for growth, ensuring the UK is the best place in the world to start and grow a defence business.”

Specifically, the investments included:

Investment of over £25 million for a new Royal Navy uncrewed AI submarine, Excalibur. The vessel was delivered earlier this year.

UK’s first uncrewed submarine delivered

Vessels

£20 million to support the development of additional laser weapons to complement the UK’s DragonFire system. This follows the signing of a £300 million contract to install the first DragonFire anti-drone systems onto Type 45 destroyers from 2027, five years earlier than previously planned, creating and sustaining almost 600 jobs across the country.

£316 million deal puts laser weapons on Royal Navy’s warships from 2027

£7.5 million for a new uncrewed helicopter, part of the Royal Navy’s move towards future ‘hybrid air wing’ aircraft carriers. The project will deliver one of the world’s first full-sized autonomous helicopters. The helicopter recently completed its maiden flight in Cornwall.

WATCH: UK’s first fully autonomous helicopter completes historic flight in Cornwall

UUV/UAV

£12 million to support the development of an air-launched collaborative Uncrewed Air Vehicle (UAV), increasing the UK’s effectiveness against air-to-air threats.
£5 million seedcorn investment into prototypes for Land Autonomous Collaborative Platforms – such as autonomous drones to support British Army Apache helicopters.

The rapid investment into emerging British uncrewed systems businesses comes alongside further commitments to industry through the Defence Industrial Strategy, with the aim of supporting the defense business.