A £9bn contract for a nuclear submarine has been awarded to Rolls-Royce – hailed by the government as a victory for the UK’s economy and nuclear deterrent.
The Ministry of Defense confirmed overnight that the British company – not to be confused with the luxury car maker – had won an eight-year contract to design, manufacture and provide support services to the nuclear reactors which power its submarine fleet.
The agreement will strengthen the Royal Navy’s continued at-sea deterrence, under which at least one nuclear missile submarine patrols the seas at all times.
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The MoD added that the AUKUS defense deal, which also involves the United States and Australia, would also benefit.
Secretary of Defense John Healey said the so-called Unity contract would save the country’s coffers £400 million over eight years by combining several contracts into one.
The announcement came as the Government strives to advance its growth agenda following the Chancellor’s decision. budget Last October was described by businesses as bad for the economy.
“It’s a boost for British jobs and for British businesses. This strengthens our nuclear deterrent,” Mr Healey told Sky News.
“It really shows how defense is part of the engine of economic growth in this country,” he said during a visit to the Rolls-Royce factory in Derby.
The deal will also support work on the Dreadnought class of nuclear submarines, currently under construction, and is expected to create 1,000 jobs and save 4,000 more.
This comes at a time when the country’s defense budget is at the center of attention, amid ongoing tensions with Russia because of his war in Ukraine.
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Earlier this week, Mr Healey revealed that a Royal Navy submarine had chased away a Russian spy ship from British shores by surfacing alongside the ship.
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US President Donald Trump is also pressuring NATO allies to increase defense spending, in addition to demands already made by the organization’s secretary general.
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The entire defense industry is awaiting the publication of the government’s Strategic Defense Review, which is expected to be completed in the spring.
More resources are widely expected to be allocated, under pressure from NATO, and defense spending is expected to reach 2.5% of gross domestic product.
The new set of priorities comes amid widespread criticism that successive governments have damaged the capabilities of Britain’s armed forces through years of cuts and underinvestment, at a time of growing global threats.