UK defence spending "falls well short" of what is required to protect the country, the chief executive of BAE Systems has warned.

Charles Woodburn described the current climate as “the most threatening time I’ve seen” and warned Russia's military advances before and during its war with Ukraine were a key concern.

Despite the Government announcing an additional £15 billion for defence in June, the then defence secretary John Healey resigned, citing inadequate military funding.

At the time, Mr Healey wrote to Sir Keir Starmer to say he had been “unable, and the Treasury has been unwilling, to commit the resources that the nation needs to defend the country at this time of rising threats”.

Mr Woodburn said the extra funding still “falls well short of what is needed to protect the country”.

“This is by far the most threatening time I’ve seen,” he told the BBC. “Even when I joined the company in 2016, I was amazed at what we saw Russian submarines doing, the cyber attacks.

“I think that’s come a long way sadly as a result of the Ukraine conflict; we’re much more aware of the proximity of a hot war in Europe.”

He said modern warfare had “changed quite profoundly” and described Russia and Ukraine as becoming “incredibly adept” at the use of drones and counter-drones.

“It’s something that we now have to really understand and make sure that we’re able to provide the capabilities that can counter that and deter aggression,” he said.

Shares in BAE Systems rose by 3.25 per cent, with other defence companies also seeing a rise following the appointment of Mr Healey as Chancellor on Monday, with expectations he will commit to further defence spending.

“The fact that he understands the requirements of defence we see as a very positive thing”, Mr Woodburn said.

BAE Systems announced this week the Ministry of Defence has given it a contract extension worth £708 million to continue developing a next-generation combat aircraft.

New Defence Secretary Wes Streeting said: “This investment in advanced combat air technology for the UK Armed Forces will strengthen our defence and deterrence, and shows our clear commitment to backing British workers with our defence investment, creating jobs and supporting communities across the UK.”