The UK Government has awarded BAE Systems a £5.9 billion contract to continue work on the Royal Navy’s next-generation Dreadnought-class ballistic missile submarines, a major milestone in the country’s long-term nuclear deterrence programme. The agreement forms part of a wider £8.4 billion funding package approved for the Ministry of Defence, supporting the construction of all four submarines in the class and reinforcing the UK’s Continuous At Sea Deterrent (CASD) capability.
The contract will fund continued progress on HMS Dreadnought, the lead boat of the class, which is scheduled to enter Royal Navy service in the early 2030s. It also covers ongoing construction of the second submarine, Valiant, while supporting fabrication and outfitting activities for the remaining two boats, Warspite and King George VI, which are currently in the early phases of production.
“The Dreadnought programme is of vital strategic importance to the UK, underpinning the security of our nation and our allies for decades to come. Its delivery depends on the strength of our national industrial base, with thousands of skilled workers right across the country playing their part in the mission to deliver this critical capability to the Royal Navy,” said Charles Woodburn, Group Chief Executive of BAE Systems.
Replacing the Vanguard fleet through an industrial investment
The four Dreadnought-class submarines are being built to replace the Royal Navy’s Vanguard-class fleet, ensuring the continuation of the UK’s sea-based nuclear deterrent. Once operational, they will become the largest, most powerful and technologically advanced submarines ever built for the Royal Navy. The programme is being delivered through the Defence Nuclear Enterprise, bringing together the Ministry of Defence, BAE Systems and industrial partners responsible for designing, building and sustaining the UK’s nuclear deterrent.
Beyond its strategic role, the Dreadnought programme is also one of the UK’s largest industrial projects. It currently supports around 30,000 jobs nationwide, including more than 7,000 employees at BAE Systems directly involved in submarine production.
BAE Systems reported that its Dreadnought supply chain expenditure reached £1.3 billion during the last financial year, bringing total programme spending with more than 1,500 UK suppliers to £8.9 billion. At its Barrow-in-Furness submarine shipyard, approximately £1 billion has been invested in facilities and infrastructure, while the workforce has expanded from 11,000 to around 16,000 employees over the past four years.
The investment is also accompanied by broader regional development initiatives. Through the Team Barrow partnership and the £200 million Barrow Transformation Fund, BAE Systems is supporting improvements to local infrastructure, training facilities and community projects alongside central and local government.
The latest funding package ensures continued momentum for one of Europe’s most complex naval programmes while sustaining the industrial capacity required to deliver the Royal Navy’s future strategic deterrent.