It was designed in response to Air Ministry Specification F.9/35, which required a powered turret as the main armament to replace the Hawker Demon.

It was developed from the Hawker Henley, a competitor for the light bomber role but put into production as a target tug, and fitted with a Boulton-Paul powered four gun turret.

[1][2] The Air Ministry released Specification F.9/35, which required a two-seater day and night "turret fighter" capable of 290 mph (470 km/h) at 15,000 ft (4,600 m) to British manufacturers in 1935.

Planned production by Avro to Specification 17/36 was abandoned and the prototype, less turret, was used at the RAE Farnborough from 1939 to test flap and dive brake configurations alongside the Hawker Henley until 1942.

On 12 February following an engine problem during a gliding test the pilot was forced to make a gear up belly landing; while the damage was judged to be repairable the Hotspur was scrapped rather than incur the cost.