News story

£3.2 billion naval base investment sustains thousands of UK jobs

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

MOD has awarded £3.2 billion of contracts to support the management of the UK's naval bases.

HMS Ocean alongside at Devonport Naval Base in Plymouth (library image) [Picture: Petty Officer Airman (Photographer) Paul A'Barrow, Crown copyright]
HMS Ocean alongside at Devonport Naval Base (library image)

The contracts will also cover the maintenance and repair of the Royal Navy’s warships and submarines, directly sustaining more than 7,500 jobs across the UK.

Babcock, which manages Her Majesty’s Naval Bases at Devonport and Clyde, has been awarded a £2.6 billion contract, while BAE Systems, which manages Portsmouth Naval Base, has been awarded a £600 million contract.

The deal, which brings 5 existing contracts under one framework, represents excellent value for money for MOD and the UK taxpayer, with over £350 million of savings secured.

Type 45 destroyer HMS Daring
Type 45 destroyer HMS Daring leaving Portsmouth Naval Base (library image) [Picture: Leading Airman (Photographer) Gary Weatherston, Crown copyright]

Defence Secretary Michael Fallon said:

This huge investment in our naval bases will directly sustain more than 7,500 jobs and skills across the UK and ensure that the Royal Navy’s fleet of 56 warships and submarines are in the best possible condition and available for operations.

Following the £3.5 billion Scout armoured vehicle contract, this is the second biggest defence contract placed by this government and reflects our commitment to giving our armed forces what they need to keep Britain safe.

As a former Minister for Portsmouth I know how important naval bases are for the local economies so I am delighted that these contracts have been awarded.

Royal Navy submarine HMS Astute
Royal Navy submarine HMS Astute sailing up the Clyde (library image) [Picture: Leading Airman (Photographer) J Massey, Crown copyright]

The contract will sustain around 1,500 jobs at Clyde Naval Base and up to 4,000 jobs at Devonport Naval Base for Babcock, and more than 2,000 BAE Systems jobs at Portsmouth.

The First Sea Lord, Admiral Sir George Zambellas, said:

These significant contracts represent a strategic investment in the Royal Navy’s essential infrastructure.

Without the stalwart and tireless support provided by each of the 3 naval bases ashore, the ships and submarines of the Royal Navy would not be able to deploy as a credible, strategic and global presence at sea.

A shipbuilder
A shipbuilder working on the aircraft carrier HMS Queen Elizabeth (library image) [Picture: Crown copyright]

Bernard Gray, MOD’s Chief of Defence Materiel, said:

These contracts are another example of how MOD is delivering on its major procurement programmes and finding both the right deal for the armed forces and driving down costs.

The 3 naval bases in the UK play a vital role in the defence of this country and in the economic well-being of the regions in which they are located.

Published 1 October 2014