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 testing. The two remaining British-based Kestrels were assigned to further trials and experimentation at RAE Bedford with one being modified to use the uprated Pegasus 6 engine. At the time of the development of the P.1127 Hawker and Bristol had also undertaken considerable development work on a supersonic version, the Hawker Siddeley P.1154, to meet a North Atlantic Treaty Organisation (NATO) requirement issued for such an aircraft. The design used a single Bristol Siddeley BS100 engine with four swivelling nozzles, in a fashion similar to the P.1127, and required the use of plenum chamber burning (PCB) to achieve supersonic speeds.