UK Taxpayers’ Cash Is Funding an Arms Firm Whose Biggest Shareholder Is Now Bankrolling Nigel Farage’s Reform UK

As the UK Government commits to the biggest sustained increase in military spending since the Cold War, rising to 2.5% of GDP by 2027 and potentially 3% in the next parliament, one of the biggest beneficiaries is likely to be QinetiQ, a company that derives over 80% of its arms-related revenue from UK taxpayers alone.

Yet while the public foots the bill, the company’s largest single shareholder, Christopher Harborne, is funnelling millions of his money into Reform UK. 

In a Byline Times investigation that reveals the full extent of how taxpayer-funded arms contracts are helping bankroll Reform UK’s political ambitions, we report that Christopher Harborne, the single largest shareholder in QinetiQ, has donated at least £13.7 million to Reform UK and a further £1 million to Boris Johnson. 

QinetiQ is almost entirely dependent on UK Government funding, with more than 80% of its arms-related revenue derived from Ministry of Defence (MoD) contracts. 

Without this taxpayer support the company would likely struggle to survive and Mr Harborne’s profits from QinetiQ would be much reduced.

QinetiQ, formed from the privatisation of the MoD’s Defence Evaluation and Research Agency in 2001, received almost £1 billion from the UK government in 2023/24 alone. Yet, as state funds flowed into QinetiQ’s coffers, its executives continued to cash in. CEO Steve Wadey took home £2.93 million that year, including £848,000 in bonuses, while CFO Carol Borg was paid £1.31 million, with £744,000 in bonuses. Wadey’s earnings are nearly 16 times the salary of the Chief of the General Staff of the British Army, who earns under £185,000 annually

Despite its private-sector status, QinetiQ – which focuses on military research, robotics, autonomous systems, cyber warfare, and aerospace – enjoys a financial safety net that many businesses can only dream of. 

Freedom of Information requests submitted by London-based charity Action on Armed Violence (AOAV) found that the UK Government accounted for £986 million of QinetiQ’s £1.5 billion total revenue in 2022/23, making it the third-largest recipient of MoD contracts after BAE Systems and Babcock International. Using data from the Stockholm International Peace Research Institute (SIPRI), which attributes 78% of QinetiQ’s revenue to arms sales, AOAV also found that 80% of its arms-related revenue is sourced from the MOD. 

Even beyond direct contracts, taxpayers foot much of QinetiQ’s operational bill. In 2023/24, QinetiQ spent £328.2 million on research and development (R&D), but just £12.8 million of that was funded internally – meaning the vast majority of R&D spending was effectively a state subsidy, something that Harborne directly benefits from.

The company also has a history of lucrative privatisation deals. When QinetiQ was first sold off, senior executives secured a 200-fold return on investment, with a £540,000 buy-in yielding £107 million, while taxpayers saw a mere nine-fold return. The House of Commons Committee of Public Accounts later branded the process ‘profiteering at the expense of the taxpayer’.

With a new wave of defence spending on the horizon, QinetiQ’s grip on public funds is likely to tighten. The UK Government has pledged billions in additional military investment, particularly in cyber warfare, AI, space defence, and next-generation combat systems – all areas where QinetiQ already has major contracts. 

At the same time, QinetiQ has actively pursued international arms sales, including exports to countries flagged by the UK as human rights concerns. Between 2008 and 2021, the company applied for 151 export licences, including 28 to countries flagged by the UK government as human rights priorities, such as Afghanistan, Iraq, Pakistan, Sri Lanka, and Israel. However, the level of transparency over QinetiQ’s arms deals has diminished since 2015, with commercial confidentiality increasingly cited as a reason for withholding arms trade data.

While limited FOI requests have since revealed occasional exports, including a Single Individual Export Licence to Israel in 2021, QinetiQ’s overall export activity post-2015 remains largely opaque. Campaigners warn that weapons developed with British taxpayer funds could be implicated in human rights abuses abroad, with QinetiQ’s arms potentially linked to civilian casualties in armed conflicts.

The Israel-Gaza conflict has likely boosted QinetiQ’s profits further. The company’s revenue under contract increased by £200 million in 2024 compared to the previous year. Critics argue that this growth highlights a deeper ethical dilemma: the UK’s financial backing for QinetiQ’s exports to volatile Gulf Arab states appears to contradict the Foreign and Commonwealth Office’s own ethical guidelines while simultaneously propping up some of the world’s most violent regimes.

---

Propping up the Right

Christopher Harborne’s role in British politics extends beyond his stake in QinetiQ. He has long been a key backer of Nigel Farage, donating nearly £14 million to the Brexit Party, later Reform UK. According to messages seen by the Financial Times, Harborne – a resident of Thailand – allegedly attempted to funnel a £50,000 donation through an associate in 2019 to make it appear that Reform had a broader donor base. While the donation was ultimately not made in this way, the exchange raises concerns about financial transparency in political funding.

Harborne’s political influence is far-reaching. He has previously donated £1.8 million to the Conservative Party between 2003 and 2022 and gave £1 million to Boris Johnson after he stood down as Prime Minister. He has also financed private jet travel for Nigel Farage, including a £33,000 trip to visit Donald Trump in July 2024.

Campaigners argue that the UK Government is essentially bankrolling a private arms company, which then allows its largest shareholder to fund a right-wing political movement. 

“QinetiQ is one of a small group of UK arms companies that receives an essentially guaranteed stream of profits from MoD contracts,” a spokesperson from Campaign Against Arms Trade (CAAT) told Byline Times.

“They operate with virtually no risk, while their exports are strongly supported by the UK government. The result is a cosy, closed arrangement that benefits shareholders and executives at the expense of taxpayers.”

QinetiQ’s fortunes appear to have been boosted by recent global conflicts. Its revenue under contract increased by £200 million in 2024 compared to the previous year, a rise that coincides with intensified global arms exports to the Middle East and Israel. Critics argue this raises urgent ethical concerns, particularly given the Foreign, Commonwealth and Development Office’s own guidelines on military exports to repressive regimes.

A QinetiQ spokesperson told Byline Times: “QinetiQ is dedicated to protecting lives and to keeping the UK and its allies safe. Our people are some of the brightest and the best, creating and testing advanced technologies that are crucial to our country’s defence and security priorities.”

As the UK Government continues to pour taxpayer money into QinetiQ, the financial ties between the arms industry and British politics are coming under growing scrutiny. With Harborne bankrolling Reform UK, critics say that the question remains: to what extent is public money indirectly fuelling the rise of Britain’s hard-right political movement?

Byline Times reached out to Mr Harborne but there was no reply at time of going to press.

For now, QinetiQ’s executives, shareholders, and investors continue to reap the rewards, alongside Reform’s war chest. The British taxpayer, it seems, is left picking up the ever-largening bill, with right-wing political parties left to reap the rewards.