Unity Contract

Debate between Maria Eagle and Caroline Nokes

Friday 24th January 2025 Commons Chamber

[The Minister for Defence Procurement and Industry (Maria Eagle)]

It is almost a shame to interrupt the flow of the hon. Member for North Dorset (Simon Hoare). With permission, Madam Deputy Speaker, I would like to update the House on an important development relating to our Royal Navy submarine fleet that will boost national security and economic growth, and deliver savings to the taxpayer.

This morning, my right hon. Friend the Defence Secretary is visiting the Rolls-Royce nuclear skills academy site in Derby to announce our new Unity contract with Rolls-Royce Submarines. Unity is worth around £9 billion over eight years and, as its name implies, brings together eight contracts into one, covering the research, design, manufacture and in-service support of the nuclear reactors that power the current and planned Royal Navy submarine fleet, which helps to keep the nation and our allies safe.

This is the biggest contract that Rolls-Royce has ever had with the UK Ministry of Defence. The contract will help Rolls-Royce to operate in a more integrated and efficient way, driving efficiencies, reducing waste, saving more than £400 million and delivering on the Government’s commitment to provide value for money for the taxpayer. It will ensure that our committed submariners, who, alongside their families, sacrifice so much to keep us all safe, can continue to protect us around the clock, every minute of every day.

Not only is this new deal a boost for our national security, but it underpins the Government’s triple-lock guarantee to our continuous at-sea nuclear deterrent and our important AUKUS defence and security partnership with the United States of America and Australia by enabling the development of our next-generation SSN-AUKUS nuclear powered, conventionally armed submarines.

The Unity contract is also a boost for British industry, for the resilience of our defence supply chains, and for jobs, skills and economic growth in communities in the east midlands and across the country. The Unity deal will create more than 1,000 new jobs, sustaining around 5,000 skilled and well-paid roles in total—the majority in Derby, but also around 200 in Glasgow and Cardiff. The deal will also help to deliver the next generations of skilled workers we need in our nuclear defence enterprise, with the Rolls-Royce nuclear skills academy offering 200 apprenticeships each year. Unity also paves the way for the use of safer and more sustainable materials in our fleet, supporting the commitment made by defence to better environmental performance.

The new contract with Rolls-Royce—an historic British industrial success story—comes as we consult industry partners and trade unions on our new defence industrial strategy, and as we seek to create a new partnership with Government fit for our more uncertain age. The Government recognise not only that defence is critical for our national security, but that it is a key driver for economic growth. It makes the UK more resilient. Through our defence industrial strategy, we aim to strengthen the virtuous circle that connects a more resilient UK-based defence sector and economic growth across the country. That virtuous circle will enhance our military capabilities and in turn make them more resilient, which not only deters our enemies but acts as an engine of growth for opportunities, skills and well-paid jobs across our devolved nations and regions.

By onshoring and putting British manufacture first wherever it is in our national interest to do so, we will build on the 200,000 skilled British jobs currently sustained by MOD expenditure, delivering on the Government’s plan for change and our primary mission to kick-start economic growth, while simultaneously delivering on the first duty of any Government: to keep their people safe.

We in this House are all passionate about defence. The defence of our nation should be too important for political point scoring, and I hope we have a consensus on that. It is in that spirit that we are consulting on our strategic defence review, so that we have a national plan for defence—not just a Labour plan for defence—that will inform our path towards spending 2.5% of GDP on defence. In that spirit, I thank my predecessor in the role, the current shadow Secretary of State for Defence, the hon. Member for South Suffolk (James Cartlidge), for the groundwork he put into this deal. What he started, we are finishing.

On Wednesday, the Defence Secretary updated the House on the key role of our submarine fleet and the role it plays in deterrence. We all saw it warding off the Russian spy ship Yantar from UK waters. We should be under no illusions: this was just the latest example of growing Russian aggression targeting the UK and our NATO allies. In our increasingly dangerous world, the UK’s nuclear deterrent is our ultimate insurance policy that protects our freedoms and our way of life.

This deal underpins that insurance policy for the next eight years, as we begin to phase in our new fleet of Dreadnought nuclear-powered and nuclear-armed submarines. This deal also foreshadows a brighter future for the UK defence sector, guided by our defence industrial strategy, which will make us more secure and prosperous at home and strong abroad. I commend this statement to the House.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Secretary of State.

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[Maria Eagle]

I thank my hon. Friend for making that point. She knows a lot about the subject, and she is correct that it is a landmark deal. It is particularly beneficial for Derby. As she said, there are many skills there already, but the Nuclear Skills Academy will be creating 200 apprenticeships and opportunities a year for young people to get into nuclear skills. Of course, those are transferable skills that are relevant not only on the military side but on the civil side, which will give young people with those skills great opportunities in life. That is one of the most important parts of the deal.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

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[Madam Deputy Speaker]

Order. The Liberal Democrat spokeswoman will be aware that she is allocated two minutes, which she has already exceeded significantly.

[Maria Eagle]

I welcome the hon. Lady’s support for the deal and for our continuous at-sea deterrent; that has not always been the Liberal Democrats’ position, so I welcome the fact that consensus has increased in this House.

The point that the hon. Lady made about enabling SMEs to get involved in the defence supply chain is tremendously important. We are currently consulting on the defence industrial strategy, and I am particularly keen to ensure we take steps to make that better, because the potential for innovation, agility and pull-through of new technologies is tremendous. I invite her to contribute to the consultation and to watch out for the defence industrial strategy when it is published.

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[Maria Eagle]

My hon. Friend is right that skills are key, which is why this deal has established a defence nuclear skills academy to ensure that 200 apprentices a year can benefit from gaining those skills. I have no doubt that long-term partnerships with defence industries will enable us to do that on a broader scale. The defence industrial strategy will be a key part of giving that confidence to companies that it is the right time to invest in skills.

[Madam Deputy Speaker (Caroline Nokes)]

I thank the Minister for her statement. While the Ministers switch places, I inform Members that we are going to return to the Climate and Nature Bill.