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£8.4bn committed to Dreadnought submarine programme

The government has committed £8.4 billion in funding for the next phase of the Dreadnought Class submarine programme, including a £5.9 billion contract with BAE Systems.

  • Government funding of £8.4 billion has been committed to the Dreadnought Class submarine programme.
  • A £5.9 billion contract has been agreed between the government and BAE Systems.
  • The Dreadnought Delivery Phase 4 aims for HMS Dreadnought to enter service in the early 2030s.

Prime Minister Andy Burnham, accompanied by Defence Secretary Wes Streeting, announced the government funding during a visit to the BAE Systems shipyard in Barrow. This commitment marks the fourth major production phase of the UK’s Dreadnought Class submarine programme.

As part of this investment, a contract worth £5.9 billion has been agreed with BAE Systems, the Defence Nuclear Enterprise (DNE) industry partner responsible for submarine production in Barrow. Further investments are planned for Rolls-Royce Submarines in Derby and the wider supply chain across the UK.

The DNE currently supports around 47,000 UK jobs and over 6,000 suppliers. The Dreadnought Delivery Phase 4 (DP4) is expected to see HMS Dreadnought, the first of the four new nuclear deterrent submarines, complete its sea trials and be ready for Royal Navy service in the early 2030s. During DP4, HMS Valiant will reach sea trials, and boats three and four will achieve key construction milestones.

The programme aims to enhance productivity growth in Barrow, where a 40% increase has been achieved over the last three years, and approximately 1,800 additional roles have been created. The DNE's demand for a UK workforce is forecast to rise to around 65,000 by 2030.

Why this matters: This investment is intended to progress the next generation of nuclear deterrent submarines, supporting national security and economic growth through the Defence Nuclear Enterprise.

What this means for you: The programme is forecast to create long-term opportunities for highly skilled jobs, including engineers, welders, and apprentices, and for small and medium-sized enterprises across the UK.

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