During a visit to last week’s Farnborough Airshow, the Prime Minister announced that the Government is to spend an extra £800 million to improve the military’s surveillance and intelligence, plus a further £300 million to extend the UK’s defensive capabilities (including a new radar for the Typhoon combat aircraft and the purchase of HMS Protector, an ice patrol ship).

David Cameron emphasised that the £1.1 billion is not new funding but a redeployment of under-spending in the Ministry of Defence due to “prudent budget management”.

The PM also announced the formation of a UK Defence Solution Centre (to develop new technologies and identify market opportunities), a Centre for Maritime Intelligent Systems (to develop technology in unmanned boats and submarines) and a new apprenticeship scheme (to attract new graduates to industry).

He said: “Because of the difficult decisions we have taken to tackle the deficit, we can make these vital investments in our defence capabilities.

We are also taking action to sustain our thriving defence industry, as part of our long-term economic plan to back business, create jobs and secure a brighter future for hard-working people.”

During his visit to Farnborough, the PM signed an agreement that will see the British and French governments spend £120 million on studying the feasibility of jointly developing an unmanned combat aircraft — a project involving six companies led by BAE Systems and France’s Dassault Aviation.

Jean-Yves Le Drian, the French Defence Minister, said that the collaboration represents “an historical opportunity for France and the UK to shape and sustain a strong, innovative and sovereign combat aircraft industry”.