£5.9 billion contract for BAE Systems’ submarines

A £5.9 billion contract has been awarded to BAE Systems by the Government to progress the country’s Dreadnought Class nuclear deterrent submarines towards entry into service.

Work on the first submarine, Dreadnought, continues at BAE Systems’ shipyard in Barrow, ready for delivery to the Royal Navy in the early 2030s.

The contract also covers continued progress on the build of the second boat, Valiant, alongside fabrication and outfitting for Warspite and King George VI, which are both in the early stages of construction.

The four-boat Dreadnought Class programme will replace the existing Barrow-built Vanguard fleet to ensure the continuation of the UK’s Continuous at Sea Deterrent capability.

The contract forms part of a wider £8.4bn package approved by Parliament for the Ministry of Defence, delivered in collaboration with the Defence Nuclear Enterprise.

The Dreadnought programme supports approximately 30,000 jobs nationally, with more than 7,000 people currently working on the project at BAE Systems.

Workforce numbers at the Barrow site have expanded from 11,000 to around 16,000 over the past four years, supported by £1bn of investment in the site.

In the last financial year, BAE Systems spent £1.3bn within its Dreadnought supply chain, bringing the total spent across more than 1,500 UK suppliers to £8.9bn.

The company is also investing in community and training facilities alongside central and local government through the Team Barrow partnership, delivering funding via the £200m Barrow Transformation Fund.

In September 2025, King Charles III visited Barrow-in-Furness to bestow Royal Port status on the town, recognising its contribution to UK defence.

Charles Woodburn, BAE Systems chief executive, said: “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.”

Defence Secretary Wes Streeting said: “Our nuclear-armed submarines are essential to keeping the UK secure, acting as the ultimate deterrent to our adversaries in an increasingly dangerous world.

“This milestone investment breathes new life into Barrow’s historic traditions and secures our commitment to deliver Dreadnought Class submarines by backing British industry.

“Supporting thousands of skilled, local jobs, we are fusing Barrow’s proud heritage with modern technology to build our security for the future, supporting the next generation to keep our country safe as their parents and grandparents did.”

£5.9 billion contract for BAE Systems’ submarines – Business Crack