BAE Systems announced record profits this year of more than 3bn, buoyed by increased defence spending linked to the Israel-Gaza conflict and Russia's war in Ukraine. The decision to scrap support for the aid aircraft is thought to have been made in order for the defence firm to pursue projects related to Nato members' 5% increase in spending on arms.
The jet, known as Tempest, will act as a symbol of Britain's hopes to remain a top-tier military nation and keep alive more than a century of building military aircraft.