BAE Systems has been awarded a £257 million contract to complete the design of the next generation of nuclear submarines.
The new vessels are due to replace the Royal Navy’s ageing Vanguard class from 2028 and provide the carriers of Britain’s nuclear deterrent.
BAE Systems previously had won two contracts worth £643 million to begin the initial design of the new submarines. The defence giant said that the deal would support 1,400 jobs and involve 240 suppliers.
Tony Johns, managing director of BAE Systems Submarine, said: “Designing a new, nuclear-powered ballistic missile submarine is one of the most challenging engineering projects in the world today.
“This funding will now allow us to mature the design over the next 12 months to enable us to start construction in 2016.”
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A further £22 million contract was awarded to Babcock, while £6 million will go to Rolls-Royce, which is also working on the “Successor” programme. A decision on whether to proceed with the project is expected next year.
The government said that the new submarines were intended to be “one of the most stealthy” in the world and one of the largest and most technically advanced ever built in the UK.
The announcement comes amid growing concerns about Britain’s defence budget. Michael Fallon, the defence secretary, has refused to say whether the Conservatives would commit to Nato’s target of 2 per cent of GDP being spent on defence.