A landmark £9 billion agreement between the UK Ministry of Defence (MoD) and Rolls-Royce Submarines Ltd has been announced, marking a major step in bolstering the Royal Navy’s nuclear submarine fleet and driving economic growth.
The contract, known as “Unity,” is the largest ever struck between the two entities and will provide design, manufacturing, and support services for nuclear reactors, ensuring the UK’s continuous at-sea deterrent.
A Long-Term Commitment to National Security
Defence Secretary John Healey revealed the Unity contract during a visit to Rolls-Royce’s nuclear reactor production facility in Derby. The deal reflects the government’s commitment to its nuclear “triple-lock” strategy, which includes:
- Building four new Dreadnought-class submarines in Barrow-in-Furness, Cumbria.
- Maintaining the UK’s 24/7 continuous at-sea nuclear deterrent.
- Delivering all future upgrades needed for the Royal Navy’s submarine fleet.
“This investment in Britain’s defence will deliver a long-term boost to British business, jobs, and national security,” said Healey. “In line with our Plan for Change, this deal with Rolls-Royce, a historic British success story, will support high-skilled UK jobs and equip the thousands of submariners that keep us all safe.”
The nuclear deterrent remains the cornerstone of the UK’s national security policy, described by Healey as the “ultimate insurance policy in a more dangerous world.” The Unity contract ensures that the Royal Navy’s fleet will continue to safeguard the UK and its NATO allies.
Economic Growth and Job Creation
The £9 billion contract is expected to create over 1,000 new jobs and secure 4,000 existing roles across the UK. Rolls-Royce has already begun expanding its operations, including doubling the size of its Raynesway site and constructing new facilities in Pride Park, Derby. Additionally, the company’s Nuclear Skills Academy, launched in 2022, will continue training 200 apprentices annually, ensuring a pipeline of talent to support the Defence Nuclear Enterprise.
The Unity contract also delivers significant cost savings. By consolidating existing commercial arrangements, the deal is expected to save over £400 million through improved efficiency and streamlined decision-making. This approach aligns with the government’s Defence Industrial Strategy, which aims to enhance collaboration between industry and government.
Steve Carlier, President of Rolls-Royce Submarines, stated, “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.”
Strengthening the UK’s Defence Industry
The Unity contract underscores the government’s broader commitment to using defence as an engine for economic growth. By supporting high-quality jobs and apprenticeships, the agreement ensures that benefits extend beyond Rolls-Royce, with supply chain opportunities reaching across the UK.
Sir Chris Gardner KBE, CEO of the Submarine Delivery Agency, emphasised the strategic significance of the deal: “The signing of the Unity contract is a key milestone in the SDA and Rolls-Royce partnership, building resilience, collaboration, and capability.”
The Dreadnought-class submarines, central to the Unity contract, represent the next generation of the UK’s nuclear deterrent. Equipped with advanced technology, these vessels will ensure the Royal Navy remains at the forefront of global naval capabilities.
AUKUS and International Collaboration
The Unity contract also aligns with the historic AUKUS defence partnership between the UK, the US, and Australia. Under the agreement, announced in 2023, Rolls-Royce will provide nuclear reactors for submarines built collaboratively by the three nations. This partnership enhances interoperability and strengthens collective security in the Indo-Pacific region.
The deal positions the UK as a leader in advanced submarine technology, leveraging expertise from across the AUKUS alliance. It also demonstrates how close collaboration between government and industry can deliver cutting-edge solutions to complex security challenges.
A Future-Focused Defence Strategy
As the UK strengthens its nuclear deterrent, the government is ensuring that its investments contribute to broader economic and strategic goals. The Unity contract exemplifies how defence spending can drive innovation, create jobs, and support national security.
Healey’s announcement reaffirms the UK’s commitment to maintaining its continuous at-sea deterrent while preparing for the future. “We are showing defence can be an engine for growth, while also driving better value for taxpayer money,” he said.
With this landmark contract, Rolls-Royce and the UK government have set the stage for a more secure, resilient, and economically vibrant future, ensuring the Royal Navy remains equipped to meet the challenges of an increasingly complex global security environment.