BAE Systems Wins £5.9bn Submarine Contract

The Government has awarded a new £5.9bn contract to BAE Systems funding critical work to progress the nation's Dreadnought Class nuclear deterrent submarines towards entry into service.

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

The contract also covers continued progress on the build of boat two, Valiant, and fabrication and outfitting of the remaining two boats, Warspite and King George VI, which are in the early stages of construction.

The four-boat Dreadnought Class programme will replace the existing Barrow-built Vanguard fleet, ensuring continuation of the UK’s critical Continuous at Sea Deterrent capability. They will be the biggest, most powerful and technically advanced submarines ever built for the Royal Navy.

The BAE Systems contract forms part of a wider £8.4bn package approved by parliament for the Ministry of Defence (MOD). The build programme is being delivered in collaboration with the MOD’s Defence Nuclear Enterprise, the partnership of organisations that operate, maintain, renew and sustain the UK’s nuclear deterrent. 

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."

The Dreadnought programme is a truly national endeavour. In the last financial year, BAE Systems’ Dreadnought supply chain spend was £1.3bn, taking the total spent so far to £8.9bn across more than 1,500 UK suppliers.

Wes Streeting MP, Secretary of State for Defence 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."

The Dreadnought programme supports approximately 30,000 jobs across the country, with more than 7,000 people currently working on it at BAE Systems alone.

In September 2025, His Majesty King Charles III visited Barrow-in-Furness to bestow Royal Port status on the town, recognising the contribution it makes to UK defence. That contribution continues to grow; £1bn has been invested in the BAE Systems Submarines site and its workforce has expanded from 11,000 to approximately 16,000 over the past four years.

Ensuring that growth is felt across the town and the surrounding area, BAE Systems continues to invest heavily in community and training facilities and is working alongside central and local Government as part of the Team Barrow partnership to deliver improvements via the £200m Barrow Transformation Fund.