BAE Systems Awarded £5.9bn Contract for Barrow-Built Nuclear Submarines
BAE Systems has been awarded a new £5.9 billion government contract to continue work on the Royal Navy’s next generation of nuclear deterrent submarines in Barrow.
The funding will support construction of all four Dreadnought Class submarines, which are being built at BAE Systems’ shipyard in Barrow-in-Furness.
The first submarine, Dreadnought, is due to be delivered to the Royal Navy in the early 2030s. Work will also continue on the second vessel, Valiant, along with the remaining two submarines, Warspite and King George VI.
What Will the New Contract Fund?
The £5.9 billion contract will fund critical work needed to move the Dreadnought programme towards completion.
Construction of the first submarine is already well underway in Barrow. The new agreement will also support further work on Valiant, while Warspite and King George VI remain at earlier stages of construction.
For BAE Systems and Barrow, the contract means:
- Continued construction of all four Dreadnought Class submarines
- Long-term work for BAE Systems’ Barrow shipyard
- Greater job security for thousands of local employees
- More opportunities for apprentices, graduates and skilled workers
- Continued spending with businesses across the UK supply chain
- Further investment in Barrow’s shipbuilding facilities
- Support for local housing, transport, education and skills projects
- A central role for Barrow in the UK’s defence programme into the 2030s and beyond
The contract forms part of a wider £8.4 billion funding package approved for the Ministry of Defence.
The four submarines will eventually replace the Vanguard Class fleet, which currently carries the UK’s nuclear deterrent.
Dreadnought Class vessels are expected to be the largest and most technically advanced submarines ever operated by the Royal Navy.
Thousands of Barrow Jobs Supported
The programme is expected to provide long-term security for thousands of workers in Barrow and across the wider UK supply chain.
More than 7,000 BAE Systems employees are currently working directly on the Dreadnought programme. Around 30,000 jobs are supported across the country when suppliers and related industries are included.
BAE Systems’ submarine workforce has also grown quickly in recent years. The company says employment at its Barrow site has increased from around 11,000 to approximately 16,000 during the past four years.
The growth includes roles in engineering, manufacturing, project management, construction and specialist technical services.
The Government has also said the wider investment will support thousands of companies and contribute towards the creation of 22,000 defence apprenticeships by 2035.
Billions Spent Through UK Supply Chain
Although the submarines are assembled in Barrow, businesses throughout the UK are involved in supplying parts, equipment and specialist services.
BAE Systems spent £1.3 billion through the Dreadnought supply chain during the last financial year.
This brought the total amount spent with more than 1,500 UK suppliers since the programme began to £8.9 billion.
BAE Systems chief executive Charles Woodburn said the programme depended on thousands of skilled workers across the country.
He described Dreadnought as being of “vital strategic importance” to the UK and said it would support national security for decades.
Further Investment Planned for Barrow
The latest contract follows major investment in BAE Systems’ Barrow facilities.
Around £1 billion has already been invested in the submarine site as the company expands its workforce and prepares to deliver both Dreadnought and future submarine programmes.
BAE Systems is also working with the Government and Westmorland and Furness Council through the Team Barrow partnership.
The partnership is linked to the £200 million Barrow Transformation Fund, which is intended to improve local housing, transport, skills, education and community facilities as the town’s defence workforce continues to grow.
Defence Secretary Wes Streeting said the investment would support skilled local employment while continuing Barrow’s long history of submarine construction.
He said the contract would combine the town’s shipbuilding heritage with modern technology and provide opportunities for a new generation of workers.
Dreadnought Due to Enter Service in Early 2030s
The first Dreadnought Class submarine is currently expected to be delivered to the Royal Navy during the early 2030s.
Once operational, the four submarines will take over from the existing Vanguard fleet and maintain the UK’s Continuous at Sea Deterrent.
This policy involves keeping at least one nuclear-armed ballistic missile submarine on patrol at all times.
The latest contract confirms that Barrow will remain at the centre of the UK’s submarine construction programme for many years to come.
