The UK Ministry of Defence (MoD) has terminated a £2.1 billion contract with Israeli arms manufacturer Elbit Systems UK for the Watchkeeper drone programme. The decision comes amid rising scrutiny over Elbit’s role in global arms production and growing public pressure from activists highlighting its alleged links to the Israeli military’s operations.

The Watchkeeper programme, a collaborative project between Elbit’s Leicester-based subsidiary UAV Tactical Systems (U-TacS) and French defence firm Thales, was aimed at modernizing the UK’s drone capabilities. Operational since 2016, the drones were expected to remain in service until 2042. However, Defence Minister John Healey announced that retiring the system would save the MoD up to £500 million over the next five years.

The cancellation follows intense activism by Palestine Action, a network targeting Elbit facilities across the UK. Since 2021, the group has occupied and vandalized Elbit sites, alleging the company's complicity in the Israeli military's actions in Palestine. Although U-TacS denies supplying weapons to Israel, activists claim the company is a key component of Israel’s military-industrial complex.

Palestine Action celebrated the contract cancellation as a major victory. "This is the beginning of the end for Elbit Systems in the UK," a spokesperson said, emphasizing the role of grassroots activism in applying pressure on the MoD.

The MoD’s decision also comes amid increased crackdowns on Palestine Action members, with recent raids on activists' homes sparking criticism of the UK government’s handling of dissent.

The fallout from the termination raises questions about the future of UK-Israel defence ties and the impact on Elbit’s operations in Britain. While the government frames the move as part of a broader strategy to decommission aging equipment, critics argue that operational challenges, activist disruptions, and ethical concerns likely influenced the decision.

This marks a pivotal moment for UK defence policy and its approach to controversial partnerships in the global arms trade.