BAE systems picks up £2.4bn in MOD funding for nuclear submarines

City A.M. Monday, 14 May 2018 ()
BAE systems picks up £2.4bn in MOD funding for nuclear submarinesThe Ministry of Defence has awarded BAE systems with a new £1.5bn nuclear submarine contract while also pledging £900m for one of its existing programmes as the defence secretary repeated the need for the UK to have a deterrent.

Defence secretary Gavin Williamson announced the contracts at a visit to the company's submarine site in Cumbria, in which he named the seventh and final submarine in the Astute class as Agincourt.

He also unveiled a new manufacturing facility to support the existing Deadnought programme, which carries the UK's independent nuclear deterrent. Once built, the submarines will measure 153.6m long, with a displacement of 17,200 tonnes. They will be delivered by the MOD, BAE Systems and Rolls-Royce.

Deadnought was announced in 2016 after the Queen approved the name, which first adorned the Royal Navy's first nuclear-powered sub 56 years ago. The £900m will support ongoing work on the submarines for another 12 months.

Williamson said: “This multi-billion-pound investment in our nuclear submarines shows our unwavering commitment to keeping the UK safe and secure from intensifying threats. HMS Agincourt will complete the Royal Navy’s seven-strong fleet of hunter-killer attack subs, the most powerful to ever enter British service, whilst our nuclear deterrent is the ultimate defence against the most extreme dangers we could possibly face.

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“Not only is this a massive boost for our armed forces, but it’s huge for Barrow, the heart of sub-building in this country. Today’s news supports around 8,000 BAE Systems submarine jobs, as well as thousands more in the supply chain, protecting prosperity and providing opportunity right across the country.”

BAE Systems submarines managing director Cliff Robson added: "Securing this latest funding for our submarines programmes is excellent news for BAE Systems and the 8,700 people in our submarines business, as well as our local community in Barrow and the thousands of people across our UK supply chain who help deliver these nationally important programmes for the Royal Navy.

"We continue to make progress on these highly complex and technical programmes and today's announcements will allow us to move forward with greater certainty and stability."

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