£9 Billion Deal Announced to Strengthen UK’s Nuclear Submarine Fleet and Create Thousands of Jobs
Image: 防衛省, CC BY 4.0 <https://creativecommons.org/licenses/by/4.0>, via Wikimedia Commons
A landmark £9 billion deal has been struck between Rolls-Royce and the UK Ministry of Defence (MoD), aimed at bolstering the Royal Navy's nuclear submarine fleet. The eight-year contract, known as the "Unity" deal, will secure over 1,000 new jobs in the UK and safeguard 4,000 existing positions, benefiting the defence sector and its supply chain.
Announced by Defence Secretary John Healey during a visit to Rolls-Royce’s nuclear reactor facility in Derby, the deal consolidates previous agreements to streamline the design, manufacture, and support of nuclear reactors for submarines. This agreement is part of the UK government's broader Plan for Change, designed to strengthen national security while stimulating economic growth.
"This investment in Britain’s defence will deliver a long-term boost to British business, jobs and national security," said Healey, adding that the deal would not only support the UK’s continuous at-sea nuclear deterrent but also drive better value for taxpayer money. He highlighted the government’s commitment to building four new nuclear submarines and ensuring the country’s nuclear deterrent remains operational 24/7, 365 days a year.
The Unity contract also supports the construction of Dreadnought-class submarines and the SSN-AUKUS programme, a collaboration between the UK, the US, and Australia. Rolls-Royce Submarines President Steve Carlier emphasized that the contract would allow the company to make "long-term investments in the right skills, equipment, and facilities" to further support UK interests, both at home and abroad.
A key feature of the deal is its potential to improve efficiency. By streamlining previous contracts and incentivizing more cost-effective delivery, the agreement is expected to result in savings of over £400 million during its duration. The contract aims to ensure the UK’s nuclear reactors remain cutting-edge and environmentally friendly, with a focus on long-term sustainability.
Rolls-Royce has already started to expand its Raynesway site in Derby and has begun operations at specially-built warehouses in Pride Park, preparing to meet the increased demand for skilled workers. In addition to the new jobs at Rolls-Royce, the deal will benefit the wider supply chain, boosting local economies, particularly in Derby, where many of the new roles will be based.
The UK’s defence sector is also seeing significant investment in skills. In 2022, Rolls-Royce opened a Nuclear Skills Academy in Derby, which aims to provide 200 apprenticeships annually for at least the next decade. This is part of a larger effort to build a skilled workforce to support the country’s nuclear deterrent, ensuring the continuity of high-quality jobs in the sector.
Sharon Graham, General Secretary of the Unite union, welcomed the deal, calling it "good news for British jobs, good news for Derby and good news for our economy." She also urged the government to apply similar principles of investing in high-quality jobs and skills to other areas of defence, including fast jet planes and Army helicopters.
The contract represents a significant milestone for both Rolls-Royce and the UK’s Defence Nuclear Enterprise. By fostering greater collaboration between the MoD and Rolls-Royce, the deal enhances the capabilities of the Royal Navy while driving economic growth and creating a robust foundation for the country’s future security needs.
This agreement comes at a pivotal time as the UK continues to strengthen its alliances, particularly the AUKUS partnership, ensuring that the Royal Navy’s fleet remains one of the most powerful in the world. With the Unity deal in place, the UK is well-positioned to maintain its strategic advantage in a more uncertain global landscape.
