Britain plans to invest over £6 billion ($8.13 billion) to enhance its submarine manufacturing capabilities, benefiting defense giants like BAE Systems and engineering firm Rolls-Royce, Finance Minister Rachel Reeves is expected to announce on Tuesday.
The move aligns with Prime Minister Keir Starmer’s commitment to significantly boost defense spending—the largest sustained increase since the Cold War—amid calls from U.S. President Donald Trump for Europe to take greater responsibility for its own security.
Last week, the UK government revealed plans to expand its fleet of nuclear-powered attack submarines from seven to as many as twelve, following recommendations from an independent defense capability review. At the time, no financial figures were provided.
In her upcoming speech, Reeves will confirm that the government will allocate more than £6 billion to strengthen the “capacity, capability, and productivity” of the country’s submarine industry, with investments directed to BAE Systems and Rolls-Royce Submarines.
This funding, which spans the upcoming four-year spending review period, aims to support the accelerated submarine production rates announced last week. Additionally, Reeves will unveil her first multi-year spending plan on Wednesday, which includes a £4 billion investment over the next ten years in the Plymouth naval base.
Further investments will be directed toward upgrading a naval base in Scotland and supporting Sheffield Forgemasters, a key supplier of submarine components.
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