Britain poised to award £2bn military satellite deal to US defence giant despite control fears

Britain poised to award £2bn military satellite deal to US defence giant despite control fears Defence Secretary Wes Streeting spoke about the issue with Washington counterpart Pete Hegseth Sign up to the News Newsletter Email address Sign up I agree to receive updates and information about my account, the GB News Community, and related products and services from GB News. By signing up you agree to the Terms and Conditions and Privacy Policy and Community Rules. Thank you for signing up! See the latest from GB News here . Choose GB News on Google - add us as a preferred source Choose GB News Support GB News Champion free speech and independent journalism while unlocking exclusive benefits. Support us The Ministry of Defence is on the verge of awarding a contract worth up to £2billion for Britain's next-generation Skynet military satellites to American defence contractor Lockheed Martin. The new deal would replace the current British-built system produced by Airbus in the UK. Concerns that switching from domestically developed technology to a US-sourced alternative could effectively give Washington a veto over how Britain operates the system have intensified sharply. The alarm grew following reports that Ukrainian forces saw their access to Elon Musk's Starlink satellite service restricted, with President Zelensky warning that "people will die" as a consequence. TRENDING Stories Videos Your Say Downing Street has already stepped in to examine the MoD's recommendation, with Prime Minister Andy Burnham expected to make the ultimate decision. The sovereignty fears centre on US export regulations known as the International Traffic in Arms Regulations, or ITAR, which allow Washington to prevent other nations from modifying, repairing or re-exporting American-supplied military equipment. Because Lockheed Martin is expected to source critical components and technologies from the United States, opponents of the deal argue these parts would fall under ITAR's jurisdiction. One defence source warned that awarding the contract to the American firm risked giving the White House an effective "kill switch" over the satellite system during future crises. Lockheed Martin is poised to receive the contract | GETTY The source told The Telegraph: "It isn't hard to imagine a future situation where there's a standoff over the Falkland Islands and we need to use Skynet, but the Americans say no. "You'd be handing Washington a veto over the system during a national crisis." Previous Skynet satellites, by contrast, have been entirely under British control, built by Airbus engineers in Stevenage, Hertfordshire. Defence Secretary Wes Streeting, visiting Washington on Thursday, said his US counterpart Pete Hegseth had personally assured him that Starlink access for Ukrainian forces had been restored, though the cause of the disruption remained unclear. LATEST DEVELOPMENTS Minister for Defence Procurement defends Labour's handling of security threats on British soil MoD scrambles to deny reports Royal Navy spy drones sent data to China in secret More than £30bn of British defence investment spent abroad with foreign suppliers Wes Streeting discussed the issue with his US counterpart Pete Hegseth | REUTERS Mr Streeting told the BBC. "Unsurprisingly, we did discuss Starlink. But I am reassured, and was reassured directly by Secretary Hegseth, that the service has been restored." The disruption followed a dispute between Kyiv and Washington over Ukrainian strikes on Russian oil refineries, which had driven up fuel prices and angered Donald Trump ahead of November's midterm elections. Shadow Defence Secretary James Cartlidge demanded that Labour guarantee full British sovereignty over Skynet, stating: "With reports that Elon Musk has restricted Ukraine's access to Starlink, there must also be total UK sovereignty when it comes to military control of a capability." Lockheed Martin has proposed building an £85m factory in the North East of England to assemble the satellites, promising roughly 500 new jobs in the region. Mr Musk's Starlink company has come under fire | GETTY Airbus, however, has warned that losing the Skynet work could threaten up to 3,000 positions at its Stevenage facility, where it has manufactured every previous generation of the satellites. Critics argue that choosing the American bid would undermine Andy Burnham's commitment to supporting British workers and businesses. Independent defence analyst Francis Tusa described Skynet as an essential pillar of UK military operations, warning that recent events in Ukraine showed Washington's willingness to leverage export restrictions. "If you award this contract to an American company, I'm afraid that means there will be a tether from these satellites back to the US, which means they can be switched off," he said. The Ministry of Defence is set to award the contract | PA The MoD maintains that it has not reached a final decision, emphasising that both UK-based bidders are undergoing full evaluation and must offer satellites assembled, integrated, and tested in Britain. A spokesman added that the winning supplier would be required to establish a UK-based "design authority" with the capacity to make modifications independently. The department declined to address whether American-sourced components would be subject to ITAR restrictions, though it is understood the contract will include safeguards intended to protect Britain's operational independence. Lockheed Martin, which said it could not discuss specifics while the procurement remained live, stressed that its British division would manage the work. A company spokesman said: "Lockheed Martin UK, a British company, will establish facilities to develop an ecosystem alongside our regional partners in the North East of England to provide the UK with a sovereign space capability." Our Standards: The GB News Editorial Charter News Woman killed in Greater Manchester stabbing named as murder probe launched News Burglar pours himself a pint mid-burglary as detectives launch probe News British Museum curator admits Bayeux Tapestry 'will never be hung up again' News Cult London cinema beloved by Quentin Tarantino and Danny Boyle saved from closure after bitter landlord dispute News Anti-migration protests threaten lifeboat crews, warns charity watchdog News Vile duo jailed for abducting and sexually assaulting 11-year-old girl in Birmingham News Search for missing fishing boat off Scottish coast stood down News Giant data centre and solar farm the size of 3,550 football pitches planned near historic British market town News Mother of Henry Nowak's killer to be set free early under Labour's release scheme News Trans women finally banned from female hospital wards in new NHS guidance News Former supply teacher jailed for six years after taking hundreds of upskirt photos of children News Man and woman arrested after two children among four dead in Ireland house fire News Police Scotland officer found guilty of raping teenage girl and woman News Amputee turned down for blue badge after council worker told him he might be able to run marathons News 'Unqualified' civil servants fighting asylum appeals as Home Office faces boat surge News Black labrador named 'animal of the year' for becoming first in the world to hunt invasive 'sea vomit' creature News Ex DUP leader Jeffrey Donaldson jailed for 15 years for child sex offences News More seven-year-olds in Britain are on disability benefits compared to 50-year-olds News Fisherman who died after boat vanished off Scottish coast named as search continues for crewmates News Harvester pub goes up in flames as firefighters work through the night to tackle raging inferno News British Army chef who built 'homemade cannon' jailed for terror-linked offences News Drink-driver who killed 'much-loved' grandfather in 84mph crash jailed News Farmer facing £350,000 clean-up bill as crime gang dumps 2000 tonnes of rubbish on his field News Teenage girl raped in popular park after being approached by three men as police issue statement News Graham Linehan police row takes new twist as Met Police ordered to re-open probe into handling of free speech case News Travellers spark outrage after leaving local area a dump when abandoning illegal campsite News Review into Britain's feared energy blackout means 'lessons will be learned', says national operator News Christmas Market beloved by locals forced to cancel as organisers make very pointed statement at who is to blame News Yorkshire man tried to rape homeless woman as she was 'dying or dead in tent' News Britain's colossal benefits bill for foreign households could fund pensions for ONE MILLION Britons