In a major boost to the UK economy and its nuclear capabilities, Rolls-Royce has been awarded a £9bn contract to design, build, and maintain nuclear reactors for the Royal Navy’s submarine fleet. The eight-year Unity contract, as it is known, was announced by the Ministry of Defence (MOD) and is set to enhance Britain's continuous at-sea deterrent while also delivering significant economic benefits.
Defence Secretary John Healey hailed the Unity contract as a win for British jobs, businesses, and national security. Speaking to Sky News during a visit to the Rolls-Royce facility in Derby, he said,
It’s a boost to British jobs, British business. It’s a boost to our nuclear deterrent. It really shows the way that defence is part of the engine for economic growth in this country
The deal consolidates multiple contracts into one, saving the UK an estimated £400m over its term. It will also play a key role in the construction of the Dreadnought-class nuclear submarines, which are currently under development. According to the MOD, the contract will create 1,000 new jobs and secure 4,000 existing roles, demonstrating the government’s commitment to supporting the UK’s advanced manufacturing sector.
Under the continuous at-sea deterrent policy, at least one Royal Navy nuclear-armed ballistic missile submarine is always on patrol, ensuring the nation’s security. This contract will further solidify the operational capabilities of the Royal Navy’s submarine fleet, which is critical at a time of increasing global tensions.
The MOD also confirmed that the AUKUS defence pact, involving the United States and Australia, would benefit from this new contract. AUKUS is a strategic partnership aimed at bolstering security in the Indo-Pacific region.
This announcement comes amid heightened scrutiny of the UK’s defence budget, particularly in light of ongoing tensions with Russia following its invasion of Ukraine. Earlier this week, Defence Secretary Healey revealed that a Royal Navy submarine had deterred a Russian spy ship by surfacing near the vessel off the UK coast, underscoring the importance of maintaining a robust naval presence.
The government is also facing calls to increase defence spending. The upcoming Strategic Defence Review, due in the spring, is expected to result in additional resources being allocated to the armed forces. NATO allies, including US President Donald Trump and the organisation’s secretary general, have been urging member states to bolster their defence budgets. Current plans aim to raise the UK’s defence spending to 2.5% of GDP.
The Unity contract not only represents a significant economic and strategic investment but also addresses years of criticism over underinvestment in the UK’s armed forces. With rising global threats and shifting geopolitical dynamics, ensuring the capability and readiness of the Royal Navy’s submarine fleet is more crucial than ever.
As Rolls-Royce embarks on this ambitious project, the contract exemplifies how defence spending can drive innovation, secure jobs, and contribute to economic growth while bolstering national security. The announcement is a timely reminder of the importance of maintaining a strong and well-supported military force in an increasingly unpredictable world.
Source: news.sky.com "Rolls-Royce wins £9bn UK submarine contract in boost to jobs and nuclear deterrent" by sky news
