# UK Targets 3.5% Defence Spending

A market report identifies Rolls-Royce, BAE Systems and Babcock International as potential beneficiaries of continued UK and NATO defence demand. It cites the UK Government’s stated aim to raise defence spending to 3.5% of GDP by 2035 and BAE Systems’ reported £75 billion order backlog. The report identifies no new solicitation, award, procurement timetable or buyer contact, so it signals possible market demand rather than an immediate bidding opportunity.

- Companies supplying UK or allied defence programmes can use the spending target and BAE’s backlog as context for assessing the market, but neither confirms a specific upcoming procurement.
- Procurement teams and contractors should distinguish this broad demand signal from funded requirements; the report provides no contract value, solicitation details or bid deadline.
- Contractors can follow specific UK and allied procurement announcements to identify any opportunities that emerge from the stated spending ambition.

**Jurisdictions:** international
**Industries:** Defense & Military
**Published:** October 01, 2026

### Government Entities
- United Kingdom Government
- North Atlantic Treaty Organization (NATO)

### Vendors
- Rolls-Royce Holdings ()
- BAE Systems ()
- Babcock International Group ()

### Sources
- [Rolls-Royce Holdings (LSE: RR.), BAE Systems (LSE: BA.) And Babcock International (LSE: BAB) Emerge As Key British Defence Plays Amid NATO Tensions](https://www.foreignpolicyjournal.com/2026/10/01/rolls-royce-holdings-lse-rr-bae-systems-lse-ba-and-babcock-international-lse-bab-emerge-as-key-british-defence-plays-amid-nato-tensions) - foreignpolicyjournal.com