BAE Systems awarded £4bn funding for nuclear submarines
BAE Systems has been awarded £3.95billion in funding by the Ministry of Defence for a submarine programme.
Yesterday, Defence Secretary Grant Shapps said the money would ‘drive forward the development of the most powerful attack submarines ever operated by the Royal Navy’.
The investment would also support ‘thousands’ of UK jobs, he said.
BAE, Britain’s biggest defence company, has been developing the nuclear-powered attack submarines, known as SSN-AUKUS.
Babcock also signed a five-year contract with the MOD yesterday to provide input into the design.
Funding boost: Defence Secretary Grant Shapps said the money would ‘drive forward the development of the most powerful attack submarines ever operated by the Royal Navy’
The BAE cash injection will cover development work to 2028.
Australia and the UK will eventually operate the submarines, which were announced in March.
The first vessels will be delivered in the late 2030s.
Charles Woodburn, BAE Systems’ chief executive, said: ‘This funding reinforces the Government’s support to our UK submarine enterprise and allows us to mature the design, and invest in critical skills and infrastructure.’