Britain is set to invest more than £6 billion ($8.13 billion) to expand its submarine-building capabilities, with major support directed towards defence giant BAE Systems and engineering firm Rolls-Royce.
The announcement was made on Tuesday by Finance Minister Rachel Reeves.
The investment is part of a broader push by Prime Minister Keir Starmer to significantly ramp up the UK’s defence capabilities, responding in part to U.S.
President Donald Trump’s calls for Europe to shoulder more responsibility for its own security. Starmer has committed to the largest sustained increase in British defence spending since the Cold War.
As part of this initiative, the UK plans to grow its fleet of nuclear-powered attack submarines from seven to as many as 12.
The cost of this expansion was not initially disclosed, but Reeves will confirm that over £6 billion will be allocated during the current four-year spending review period to strengthen the UK’s submarine industrial base.
This includes investments in both BAE Systems and Rolls-Royce Submarines.
According to the government, the funding will enhance the capacity, capability, and productivity of submarine production, enabling industry to meet the increased demand announced last week.
Reeves is also expected to reveal a broader multi-year spending plan on Wednesday, which includes £4 billion in investment over the next decade for the Plymouth naval base.
Additional funds will go toward the redevelopment of a naval base in Scotland and support for Sheffield Forgemasters, a specialist steelmaker that supplies submarine components.
