£9bn submarine deal to create over 1,000 jobs

Over 1,000 jobs are set to be created following an approximately £9bn deal that will see Rolls-Royce design, manufacture and support services to nuclear reactors in Royal Navy submarines.

The Unity contract is expected to deliver a long-term boost to British business, jobs and national security
The Unity contract is expected to deliver a long-term boost to British business, jobs and national security - AdobeStock

The government said the eight year ‘Unity’ contract with Rolls-Royce Submarines will boost national security, safeguard 4,000 jobs, and deliver on its Plan for Change

In a statement, defence secretary, John Healey MP said: “This investment in Britain’s defence will deliver a long-term boost to British business, jobs and national security. 

“In line with our Plan for Change, this deal with Rolls-Royce, a historic British success-story, will support high-skilled UK jobs who equip the thousands of submariners that keep us all safe. We are showing defence can be an engine for growth, while also driving better value for taxpayer money. 

“National security is a foundation of our government’s plan for change, and this is a clear demonstration of our commitment to the UK’s nuclear deterrent, which is our ultimate insurance policy in a more dangerous world.”

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The contract is said to represent the culmination of years of planning between Rolls-Royce and UK MoD.

With a long-term commitment across the Rolls-Royce Submarine programmes, Unity draws together current and upcoming work into one portfolio. Alongside supporting UK jobs, the agreement is expected to streamline previous contracts and will incentivise more efficient delivery, resulting in savings of over £400m over the contract period.

The deal also reinforces the government’s commitment to the ‘triple-lock’ on the nuclear deterrent, which includes building four new nuclear submarines in Barrow-in-Furness, in Cumbria; maintaining a continuous at sea nuclear deterrent; and delivering all future upgrades needed. 

Sir Chris Gardner KBE, CEO Submarine Delivery Agency said: “The signing of the Unity contract is a key milestone in the SDA and Rolls-Royce partnership, building resilience, collaboration, and capability. Bringing together existing commercial arrangements, it is a clear signal of our commitment to deliver greater effectiveness, efficiency, and agility to meet the needs of the Defence Nuclear Enterprise and support the Royal Navy’s submarines now and into the future.”

“This long-term contract enables us to invest in the right skills, equipment, and facilities to play our part in protecting UK interests at home and overseas,” added Steve Carlier, president Rolls-Royce Submarines.