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The eight-year, £9 billion contract is expected to create more than 1,000 UK jobs and safeguard a further 4,000 roles, the government said today (24 January).
Designed to boost national security and economic growth, the deal was announced at Rolls-Royce’s nuclear reactor production facility in Derby by defence secretary John Healey. “This investment in Britain’s defence will deliver a long-term boost to British business, jobs and national security,” he said.
“National security is a foundation of our government’s Plan for Change, and this is a clear demonstration of our commitment to the UK’s nuclear deterrent, which is our ultimate insurance policy in a more dangerous world.”
The investment comes amid heightened tensions with Russia over its repeated forays into British waters and fears of sabotage of undersea cables. On 22 January, Healey called the latest ‘spy ship’ intrusion “another example of growing Russian aggression”. A British submarine was used as a deterrent during a previous encounter with the same vessel, he revealed.
Concerns over European security were heightened on 23 January by comments from new US president Donald Trump, who questioned his country’s ongoing contribution to Nato and called on other member states to boost their defence spending to 5% of GDP. The UK currently spends 2%, with plans to increase to 2.5%.
The UK government said the new contract strengthens the Aukus partnership with the US and Australia. The alliance contracted Rolls-Royce Submarines to provide reactors for Australia’s nuclear submarines in March 2023.
Today’s deal “represents long-term certainty for a major British business, building in resilience and capability across the supply chain. This will generate more efficiency and allow for effective risk and opportunity management, providing incentives to produce more for no increase in cost, including on work such as the building of Dreadnought-class submarines,” the government announcement said.
It is also designed to reinforce the ‘triple lock’ on the nuclear deterrent, including building four new nuclear submarines in Cumbria, maintaining the continuous at-sea nuclear deterrent, and delivering necessary future upgrades.
“This long-term contract enables us to invest in the right skills, equipment and facilities to play our part in protecting UK interests at home and overseas,” said Steve Carlier, president of Rolls-Royce Submarines.
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