Rolls-Royce awarded Royal Navy nuclear submarines contract

Above: Vanguard-Class nuclear submarine at sea.
Courtesy MoD

Creating more than 1,000 UK jobs and safeguarding 4,000 other roles, the contract with Rolls-Royce Submarines Ltd – dubbed ‘Unity’ – will deliver the design, manufacture and support services to nuclear reactors to power the Royal Navy’s nuclear submarines.

UK Defence Secretary, John Healey MP will announce the deal today on a visit to Rolls-Royce’s nuclear reactor production facility in Derby. Alongside backing thousands of UK roles, the agreement also streamlines previous contracts and incentivises more efficient delivery, resulting in better value for money for the taxpayer through savings of more than £400 million over the eight-year contract. As part of the national endeavour to maintain a continuous at-sea deterrent, this agreement will help streamline decisionmaking and foster the kind of close partnership between industry and government that is essential towards achieving this aim.

The announcement bolsters Britain’s security as a foundation of the UK Government’s Plan for Change and strengthens the historic AUKUS partnership with the USA and Australia. In line with the upcoming Defence Industrial Strategy, Unity will drive significant UK economic growth over many years.

In Derby today, John Healey will speak with staff and apprentices and use the visit to reinforce 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 our continuous at sea nuclear deterrent and delivering all necessary future upgrades.

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."

The eight-year contract represents long-term certainty for a major British business, building in resilience and capability across the supply-chain. This will generate more efficiency and allow for effective risk and opportunity management, providing incentives to produce more for no increase in cost, including on work such as the building of Dreadnought Class submarines.  

The agreement will also help streamline decision-making and foster close partnership with industry, supporting the aims of the new Defence Industrial Strategy.    

Steve Carlier, President Rolls-Royce Submarines said: "We’re delighted to announce the Unity Contract, which confirms our commitment to the Royal Navy and the Defence Nuclear Enterprise. 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."

The Government is committed to the nuclear deterrent triple Lock:  

• Building four new nuclear submarines in Barrow-in-Furness, supporting high-quality, high-status apprenticeships and jobs, with the supply chain benefits being felt right across the country.   
• Britain maintaining its continuous at-sea deterrent, 24 hours a day, 365 days a year – securing protection for both the UK and NATO allies.   
• The delivery of all future upgrades needed for those submarines to patrol the waters and keep our country safe.

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."