Seems UK will:
a. Not upgrade all 48 F-35B jets* they're ordering to Block 4 software standard (this is basically full operational capability).
b. Not obtain any gun pods for the F-35B.
c. It seems the Block 4 upgrade will average at $27 USD million dollars. Given F-35s are now being sold without Block 4 for $80 USD million means that to get a fully operational F-35 with Block 4 the unit cost is probably still over $100 USD million.
Note Block 4 isn't slated for service entry until 2024 at which point most NATO countries and Australia who have ordered F-35s will have them all delivered! So all these users will have to cough up huge amounts of cash to have them upgraded.
And that doesn't take into account already paid costs of incremental changes to early aircraft already delivered!
link
* UK has currently ordered 48 F-35Bs. The official requirements is 138. Yet no one knows when the other 90 will be ordered, or more appropriately if they will be ordered.
And then let's not forget the RAF is working on a new 6th generation jet, the Tempest.
In any case, RAF is in free for all. It's current fleet numbers are down to about 160 aircraft – 142 Eurofighters and 18 F-35Bs.
If the RAF orders a full fleet of 138 F-35s, there won't be much demand for the Tempest.
So I can see them limiting the F-35 fleet to 48 and then acquiring 140+ Tempests.
Of the 142 Eurofighters, only about 105 are modern Tranche 2 and 3 standard and the remaining 37 are Tranche 1s with very limited capabilities.