Major £8.4bn investment advances UK nuclear deterrent and backs British industry
The UK will continue to be kept safe for decades to come, as major investments will progress the next phase of the next generation nuclear deterrent submarines.
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£8.4 billion government funding committed to drive forward construction of the Dreadnought Class submarines
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around 47,000 jobs and over 6,000 suppliers across the UK supported by the Defence Nuclear Enterprise
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the programme to deliver the four new nuclear deterrent submarines is advancing at pace
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significant step change in driving productivity and innovation to deliver faster and more efficiently
The UK will continue to be kept safe around the clock for decades to come, as major investments will progress the next phase of the build of the next generation of nuclear deterrent submarines, while backing British jobs.
During a visit to BAE Systems (BAES) shipyard in Barrow, Prime Minister Andy Burnham, who was accompanied on the visit by Defence Secretary Wes Streeting, announced that government funding worth around £8.4 billion has been committed to begin the fourth major production phase of the UK’s Dreadnought Class submarine programme. The Prime Minister highlighted the pace of progress in the build and the government’s enduring commitment to national security and economic growth.
As part of this investment, a contract worth £5.9 billion has been agreed by the government and BAES, the Defence Nuclear Enterprise (DNE) industry partner responsible for delivering submarine production from their shipyard in Barrow, the home of UK submarine building. Further investments will be committed to Rolls-Royce Submarines in Derby and the wider supply chain across the UK.
The DNE supports over 6,000 UK companies in the supply chain and backs around 47,000 UK jobs. The Dreadnought Delivery Phase 4 (DP4) investment underlines defence as an engine for growth and reinforces the work to modernise our nuclear capabilities and the facilities that deliver them as a truly national endeavour.
DP4 will see HMS Dreadnought, the first of the four new nuclear deterrent submarines, complete its sea trials and be ready to enter service with the Royal Navy in the early 2030s. Boat two, HMS Valiant, will reach sea trials while boats three and four will achieve key construction milestones.
This next phase looks to further enhance continual and sustained productivity growth in Barrow, where a 40% increase has been achieved over the last 3 years, and around 1,800 additional roles have been created under this government.
Building on the Defence Industrial Strategy, making defence an engine for growth, the contracts for DP4 will continue to back UK business, lead in innovation and sustain a resilient UK industrial base. Utilising recent Single Source Contract Regulations changes, the BAES contract will incentivise faster and more efficient delivery with a focus on productivity and cost control, but only when agreed performance targets and programme outcomes are achieved.
Defence Secretary Wes Streeting MP said:
“Our nuclear-armed submarines are essential to keeping the UK secure, acting as the ultimate deterrent to our adversaries in an increasingly dangerous world.
“This milestone investment breathes new life into Barrow’s historic traditions and secures our commitment to deliver Dreadnought Class submarines by backing British industry.
“Supporting thousands of skilled, local jobs, we are fusing Barrow’s proud heritage with modern technology to build our security for the future, supporting the next generation to keep our country safe as their parents and grandparents did.”
The Dreadnought programme is supporting high-skilled employment across the UK, with significant opportunities for regions through the defence supply chain. The wider DNE’s demand for UK workforce is forecast to rise to approximately 65,000 by 2030. This growth is creating long-term opportunities for highly skilled jobs, including engineers, welders and apprentices, and for small and medium-sized enterprises.
The North of England is a powerhouse of British industry and innovation, and remains central to the DNE, which supports around 15,000 jobs and more than 1,000 supply chain companies, and spent £3.4 billion in the region in the last financial year.
Chief of Defence Nuclear, Maddy McTernan CB, said:
“This investment builds on significant momentum in the Dreadnought programme and our partnership with BAE Systems, Rolls-Royce and the extensive submarine supply chain.
“This is a national endeavour that will deliver a safe, secure and effective nuclear deterrent for decades to come, providing the bedrock of the UK’s national security and the cornerstone of our commitment to NATO and global security.”
This milestone demonstrates the UK’s continued commitment to delivering on the Strategic Defence Review and maintaining its nuclear deterrent under the nuclear triple lock: building four Dreadnought submarines in Barrow, sustaining the nuclear deterrent, and delivering future upgrades, including the replacement warhead. The significant DNE investment confirmed in the Defence Investment Plan reflects this unwavering commitment.
The UK’s nuclear deterrent underpins the country’s contribution to NATO and Euro-Atlantic security, demonstrating to allies and adversaries alike that Britain’s deterrent remains credible, independent and enduring.
This announcement highlights a programme delivering across multiple priorities: strengthening national security, supporting allies, transforming industrial performance, and driving economic growth across all parts of the UK.