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Prime Minister Andy Burnham announced on 30 July 2026 that the government will invest £8.4 billion in the next stage of the UK's Dreadnought Class nuclear deterrent submarine programme. The contract, known as Delivery Phase 4 (DP4), covers the continued construction of all four Dreadnought submarines and is the largest single tranche of funding committed to the programme to date.
Speaking during a visit to Barrow in Furness where BAE Systems has built every UK submarine for decades, Burnham framed the announcement not only as a national security commitment but as an economic intervention, describing the investment as "British money, spent on British workers, British firms and British skills, in the places that were written off for forty years."
Key Announcements at a Glance
- Total investment: £8.4bn committed to Delivery Phase 4 of the Dreadnought Class submarine programme, announced 30 July 2026
- BAE Systems contract: £5.9bn of the total goes directly to BAE Systems in Barrow, the remaining £2.5bn flows to the wider UK supply chain
- Jobs supported: The Defence Nuclear Enterprise currently supports approximately 47,000 UK jobs, forecast to rise to 65,000 by 2030
- Apprenticeships target: 22,000 apprenticeships are to be created across the Defence Nuclear Enterprise by 2035
- Northwest apprenticeship scheme: A new trailblazer initiative will help local SMEs in the defence supply chain recruit and train 30 apprentices over three years, using BAE Systems apprenticeship model
The Dreadnought Class is the successor to the current Vanguard Class submarines, which carry the UK's Trident nuclear warheads. The programme has been in development for over a decade and will eventually provide four new submarines to maintain the UK's Continuous At Sea Deterrence, the policy of keeping at least one nuclear armed submarine on patrol at all times.
The £8.4bn contract funds a defined set of milestones across the four boat build programme:
- HMS Dreadnought (boat one): Will complete sea trials and enter service with the Royal Navy in the early 2030s under this phase
- HMS Valiant (boat two): Will reach sea trials during Delivery Phase 4
- Boats three and four: Will continue progressing through their construction phases
- Productivity gains: BAE Systems Barrow shipyard has already achieved a 40% increase in productivity over the last three years
- Workforce growth in Barrow: Around 1,800 additional roles have been created at the Barrow site under this government
The government has also made changes to procurement rules designed to encourage faster delivery and better value for money:
Procurement Reform Measures
- Single Source Contract Regulations: Reforms announced earlier in 2026 align financial incentives with performance, encouraging innovation and faster delivery
- Cost controls: The contracts include specific measures targeting cost control and productivity improvements
- Supply chain split: £2.5bn of the total is directed to the wider UK supply chain, spanning more than 6,000 UK based companies
- Geographic spread: Investment supports jobs in Barrow, Derby, Plymouth, Bristol, Aldermaston, Sheffield, Rosyth, Thurso and on the Clyde
The Defence Nuclear Enterprise is a partnership of government departments and private industry responsible for operating, maintaining and renewing the UK's nuclear deterrent. The investment announced on 30 July supports the existing workforce and funds significant expansion.
The 47,000 jobs currently supported by the Defence Nuclear Enterprise are spread across the UK:
UK Jobs by Location
- Barrow in Furness: 13,500 jobs, submarine design and construction at BAE Systems
- Aldermaston and Burghfield: 9,000 jobs, warhead design and manufacture at AWE
- HMNB Devonport, Plymouth: 8,000 jobs, submarine maintenance by Babcock
- HMNB Clyde: 5,000 jobs, submarine operations base
- Derby: 4,000 jobs, nuclear reactor cores produced by Rolls Royce
The remaining jobs are distributed across further sites tied into the nuclear supply chain:
- Bristol: 2,500 jobs
- Rosyth: 850 jobs
- Sheffield: 700 jobs, specialist steel for nuclear reactors produced by Sheffield Forgemasters
- Thurso: 250 jobs
- Northwood and Portsmouth: Submarine operations support
Alongside the headline investment, Burnham unveiled a new apprenticeship scheme specifically for small and medium sized enterprises in the Northwest defence supply chain. The initiative will help local SMEs recruit and train 30 apprentices over the next three years, drawing on the BAE Systems apprenticeship model already operating in Barrow.
The government says it intends to build on this model across more areas, using major procurement contracts as a vehicle for generating local employment opportunities for young people, particularly those who may have missed out on their first choice apprenticeship.
Apprenticeship Commitments
- 22,000 apprenticeships by 2035: Target across the whole Defence Nuclear Enterprise, part of the broader workforce expansion plan
- New Northwest SME scheme: Trailblazer initiative supporting 30 apprentices over three years within the local defence supply chain
- BAE Systems model: The new SME scheme replicates the apprenticeship structure already established by BAE Systems in Barrow
- Wider procurement principle: The government has signalled that baking apprenticeship access into major contracts will be a broader approach in the coming weeks
The Dreadnought announcement sits within the government's commitment to deliver the 2025 Strategic Defence Review and maintain the UK's nuclear triple lock, the policy commitment to retain, sustain and modernise the nuclear deterrent.
Defence Secretary Wes Streeting said the submarines are "essential to keeping the UK secure, acting as the ultimate deterrent to our adversaries in an increasingly dangerous world." He added that the milestone investment "breathes new life into Barrow's historic traditions."
The Prime Minister said he would set out further detail in the coming weeks on how the government plans to ensure major procurement projects "deliver for more places like Barrow."
Key Takeaways
- £8.4bn funds Delivery Phase 4 of the Dreadnought programme, the UK's next generation nuclear deterrent submarine build
- £5.9bn goes to BAE Systems in Barrow, £2.5bn to the wider UK supply chain across more than 6,000 companies
- The Defence Nuclear Enterprise supports 47,000 jobs now, rising to 65,000 by 2030 with 22,000 apprenticeships by 2035
- HMS Dreadnought is on track to complete sea trials and enter Royal Navy service in the early 2030s
- A new trailblazer scheme will use the BAE Systems apprenticeship model to bring more Northwest SMEs into the defence training pipeline
Sources & Further Reading
- GOV.UK: Burnham drives defence to deliver security and growth in every postcode with £8.4bn nuclear submarine investment supporting 22,000 apprenticeships Archived copy (OGL): archived page
- GOV.UK: Strategic Defence Review 2025 Archived copy (OGL): archived page
- GOV.UK: Defence Nuclear Enterprise
- GOV.UK: Ministry of Defence