UK Tests Hypersonic Target to Strengthen Air Defence and Support SMEs

Key Points

• The UK government has announced a £20 million investment to help small and medium-sized enterprises (SMEs) develop a hypersonic “clay pigeon” target.
• The target, known as Project Bowline, will help test missile defence systems designed to counter hypersonic threats travelling at five times the speed of sound.
• The contract has been awarded to Lockheed Martin UK and will support around 63 jobs in Bedfordshire.
• Fifteen UK SMEs are expected to benefit through the supply chain.
• Project Bowline forms part of the trilateral AUKUS Pillar 2 partnership between Australia, the UK and the United States.
• A new Defence SME Action Plan has also been unveiled at the Farnborough International Airshow, aimed at removing barriers for small businesses in defence supply chains.
• The government has committed to spending £7.5 billion with UK SMEs by 2028, a 50 per cent increase on current levels.
• A further £400 million has been ringfenced annually for UK Defence Innovation (UKDI).
• Defence Secretary Wes Streeting MP and Minister for Defence Readiness and Industry Luke Pollard MP championed the announcements at the airshow.
• Industry body ADS has welcomed the plan, noting it represents more than 1,500 member SMEs across the UK.

Farnborough (Britain Today News) July 22, 2026 — British small businesses will help develop a hypersonic “clay pigeon” target, a vehicle intended to represent threats capable of travelling at five times the speed of sound, under a new £20 million investment announced at the Farnborough International Airshow yesterday. The initiative, alongside a newly published Defence SME Action Plan, marks the latest step in the government’s drive to widen access to defence contracts for smaller British firms while strengthening the UK’s ability to counter advanced aerial threats.

The hypersonic “clay pigeon” target will test missile defence systems designed to protect the UK from advanced threats such as hypersonic missiles, and forms part of a trilateral partnership between Australia, the UK and the United States. The contract, awarded to Lockheed Martin UK, will support around 63 jobs in Bedfordshire and will see 15 UK SMEs benefit through the supply chain.

The announcement came as the government unveiled a new Defence SME Action Plan at Farnborough yesterday, where Defence Secretary Wes Streeting MP and Minister for Defence Readiness and Industry Luke Pollard MP were championing the UK defence industry. The plan is designed to open up opportunities for small businesses across the defence supply chain, at a time when ministers are seeking to demonstrate that increased defence spending translates into tangible economic benefits across the country.

What Is Project Bowline and Why Does It Matter?

Known as Project Bowline, the work will produce a hypersonic target designed to act as an advanced “clay pigeon” for next-generation air defence systems, including sensors and interceptors, to shoot down as they are developed. The concept mirrors the way clay pigeons are used in shooting sports as a moving target for practice, except in this case the “target” is a vehicle capable of travelling at hypersonic speeds — broadly defined as five times the speed of sound or faster.

By providing a realistic, high-speed target for British air defence systems to track and intercept, Project Bowline is intended to help the UK test counter-hypersonic missile capabilities, ensuring that the Armed Forces remain at the forefront of both producing and countering the most advanced threats. Hypersonic weapons have become a growing focus for Western militaries in recent years, owing to their speed and manoeuvrability, which can make them significantly harder to detect and intercept than conventional ballistic missiles.

How Does Project Bowline Fit into the AUKUS Partnership?

The project is being delivered as part of international collaboration under AUKUS Pillar 2, the trilateral partnership between Australia, the UK and the United States established to develop advanced military capabilities, including hypersonic and counter-hypersonic technologies. While AUKUS Pillar 1 is primarily associated with the delivery of nuclear-powered submarines to Australia, Pillar 2 focuses on the joint development of advanced capabilities such as artificial intelligence, undersea technologies, quantum computing and hypersonics.

Project Bowline is presented by officials as a practical demonstration of that pillar in action, with the UK, US and Australia working together to build shared testing infrastructure that each nation can draw upon as hypersonic and counter-hypersonic technologies mature.

What Has the National Armaments Director Said About the Project?

National Armaments Director Rupert Pearce said:

“Delivering Project Bowline will help ensure the UK stays ahead of rapidly evolving hypersonic threats. By working with our AUKUS partners and investing in advanced missile technology in the UK, we strengthen our national arsenal, boost a key sector in our economy and support our ability to deliver effective missile defence.”

His comments underline the dual purpose officials are attaching to the project: bolstering the UK’s defensive capability against emerging threats, while simultaneously using the investment to stimulate economic activity within the domestic defence sector.

How Many Jobs and SMEs Will Benefit from the Investment?

According to the Ministry of Defence, the £20 million contract awarded to Lockheed Martin UK will support around 63 jobs based in Bedfordshire. Alongside this direct employment, 15 UK SMEs are expected to benefit through the supply chain that feeds into the project, giving smaller specialist firms a route into a high-profile, internationally significant defence programme.

The structure of the contract — a prime contractor supported by a network of smaller suppliers — reflects a wider pattern in UK defence procurement, where large defence primes such as Lockheed Martin UK are increasingly expected to demonstrate how their contracts create opportunities further down the supply chain for smaller British businesses.

What Is the New Defence SME Action Plan?

The new SME Action Plan, led by the Defence Office for Small Business Growth, sets out concrete steps to remove the barriers that small and medium-sized businesses face when working with the defence sector. The plan focuses on opening up supply chains, simplifying procurement processes and creating more accessible opportunities across the defence industry.

The plan is designed to simplify processes at every stage of the contracting cycle, from initial engagement with the Ministry of Defence through to contract award and delivery. It marks another step in the MoD’s broader effort to increase the proportion of defence spending directed towards SMEs, with a target of £7.5 billion by 2028 — representing a 50 per cent increase on current spend.

What Did the Minister for Defence Readiness and Industry Say?

Minister for Defence Readiness and Industry, Luke Pollard MP, said:

“British businesses are the backbone of our defence industry and we’re backing them to succeed. Our SME Action Plan will give firms of every size a clearer, faster route to contracts at home, while programmes like Project Bowline show exactly how major defence investment flows through to small businesses across the UK.”

He added:

“With our commitment to spend £7.5 billion with UK SMEs by 2028 and a further £400 million ringfenced for UK Defence Innovation every year, defence is delivering growth across the UK, sustaining skilled jobs and strengthening our security at the same time.”

Pollard’s remarks position the announcements as part of a wider narrative linking defence spending to regional economic growth, a theme that has featured prominently in recent government messaging around industrial strategy.

How Many SMEs Already Work with the Ministry of Defence?

National Armaments Director Rupert Pearce also set out the scale of existing engagement between the MoD and smaller businesses, stating:

“The Ministry of Defence already works with around 12,000 SMEs through its supply chain and that work has only accelerated in the year since publication of the Modern Industrial Strategy and Defence Industrial Strategy.”

He continued, pointing to specific initiatives that have already been delivered, noting that this work has included the launch of the Defence Growth Deals and Defence Technical Excellence Colleges, the award of 13 British-based SMEs contracts of up to £4 million each from the Defence Unicorn Fund, and the ringfencing of £400 million annually for UK Defence Innovation to accelerate innovation.

What Funding Has Been Committed to UK Defence Innovation?

Separately from the Project Bowline contract, the government has confirmed that £400 million will be ringfenced annually for UK Defence Innovation, or UKDI. This funding stream is intended to accelerate the development of new technologies and capabilities within the UK defence sector, supporting both established firms and newer entrants seeking to bring innovative products to market.

Combined with the £7.5 billion target for SME spending by 2028, officials argue that the funding commitments provide a clearer long-term signal to smaller businesses considering investment in defence-related research and development.
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How Has Industry Responded to the SME Action Plan?

Kevin Craven, Chief Executive of ADS, the trade body representing the UK’s aerospace, defence, security and space sectors, welcomed the publication of the plan. He said:

“We welcome the publication of the SME Action Plan today – it is a positive and timely step towards unlocking the full potential of the UK’s defence industrial base. Smaller businesses – including more than 1,500 ADS members – form our industrial bedrock, delivering innovation, agility and critical capabilities throughout the UK.”

Craven added:

“Commitments to simplifying procurement processes, improve access to opportunities and increase engagement with smaller businesses will help ensure that innovative UK companies can compete, invest and scale with confidence.”

He concluded:

“We look forward to working closely with Government and our members to deliver this ambition into tangible opportunities for businesses across every region of the UK.”

What Role Did the Farnborough International Airshow Play in the Announcement?

Both the Project Bowline contract and the Defence SME Action Plan were unveiled at the Farnborough International Airshow, one of the world’s largest aerospace and defence trade events, held biennially in Hampshire. The airshow provides a high-profile platform for governments and industry to announce major contracts, partnerships and policy initiatives, and this year’s event featured Defence Secretary Wes Streeting MP and Minister for Defence Readiness and Industry Luke Pollard MP promoting the UK defence sector to international delegations, investors and industry representatives.

The timing of the announcements at Farnborough reflects a broader pattern in which the airshow is used as a focal point for showcasing UK defence capability and industrial policy to a global audience, including potential export customers and international partners.

What Happens Next for Project Bowline and the SME Action Plan?

With the contract now awarded to Lockheed Martin UK, work on developing the hypersonic target is expected to progress through the supply chain involving the 15 identified SME suppliers, supporting the 63 jobs based in Bedfordshire. The programme will continue to operate under the umbrella of AUKUS Pillar 2, with officials indicating that the UK will work closely with Australian and American partners as the technology develops.

Meanwhile, the Defence Office for Small Business Growth will be responsible for implementing the measures set out in the SME Action Plan, with the stated aim of simplifying procurement and increasing SME participation across the defence supply chain in the years ahead. The government has framed both announcements as evidence of its wider commitment to ensuring that increased defence expenditure delivers measurable benefits for British businesses, particularly smaller firms operating outside traditional defence hubs.

Taken together, the £20 million Project Bowline contract and the new SME Action Plan represent two strands of the same policy objective: strengthening the UK’s technical capability to counter emerging hypersonic threats, while ensuring that the economic benefits of that investment are shared more widely across the domestic defence industrial base.