Hawker Siddeley Harrier cancelled after the release of the British Government's 1957 Defence White Paper, which advocated a policy shift away from manned aircraft and towards missiles. This policy resulted in the termination of the majority of aircraft development projects then underway for the British military. Hawker sought to quickly move on to a new project and became interested in Vertical Take Off/Landing (VTOL) aircraft, which did not need runways. According to Air Chief Marshal Sir Patrick Hine this interest may have been stimulated by the presence of Air Staff Requirement 345, which sought a V/STOL ground attack fighter for the Royal Air
Hawker Siddeley Harrier the P.1154 was cancelled, as the Royal Navy had already begun procurement of the McDonnell Douglas Phantom II and the RAF placed a greater importance on the BAC TSR-2's ongoing development. Work continued on elements of the project, such as a supersonic PCB-equipped Pegasus engine, with the intention of developing a future Harrier variant for the decades following cancellation. Following the collapse of the P.1154's development the RAF began considering a simple upgrade of the existing subsonic Kestrel and issued Requirement ASR 384 for a V/STOL ground attack jet. Hawker Siddeley received an order for six pre-production aircraft in 1965,