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UK Awards Rolls-Royce £9 Billion Contract to Strengthen Submarine Nuclear Deterrent

The United Kingdom has awarded Rolls-Royce a £9 billion ($11 billion) eight-year contract to design, manufacture, and support nuclear reactors for its submarine fleet. This move bolsters the Royal Navy’s continuous at-sea nuclear deterrent while aligning with the AUKUS defence pact involving the U.S. and Australia, the Ministry of Defence (MOD) announced on Friday.

The agreement ensures the Royal Navy’s capability to maintain at least one nuclear-armed ballistic missile submarine on constant patrol, reinforcing national security amid increasing global tensions.

Strategic Defence Spending and NATO Commitments

The announcement follows U.S. calls, reiterated by President Donald Trump on Thursday, for NATO members such as Britain to allocate 5% of GDP to defence spending. While the UK government has committed to increasing defence expenditure to 2.5% of GDP, no timeline has been provided.

Tensions with Russia remain high, underscored by reports of a Russian spy ship entering UK waters earlier in the week. The MOD has indicated that details on achieving the 2.5% target will be outlined in the forthcoming Strategic Defence Review, which is still expected in the spring.

Economic and Operational Benefits of the Unity Contract

The new contract, named Unity, consolidates multiple agreements into a single framework, projected to save Britain £400 million over the eight-year period. Defence Minister John Healey highlighted the economic and strategic value of the contract, emphasizing its role in supporting British jobs and businesses.

“This contract is a significant boost for our nuclear deterrent, British industry, and the economy,” Healey told Sky News during a visit to Rolls-Royce’s nuclear reactor production facility in Derby.

The Unity contract will contribute to the development of the Dreadnought class of nuclear submarines, currently under construction by BAE Systems. It is anticipated to create 1,000 new jobs and safeguard 4,000 existing roles, further underscoring the defence sector’s contribution to economic growth.

Broader Implications for Defence and Security

The Rolls-Royce agreement underscores the UK’s commitment to strengthening its defence capabilities while supporting the AUKUS alliance. It reflects a strategic investment in national security and defence technology amid growing geopolitical challenges.

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