Sunak announces UK nuclear industry to get £200m boost amid defense concerns

Rishi Sunak will announce a “significant national effort” as he launches a £200m investment plan aimed at securing the future of the UK nuclear industry and boosting jobs.

The Prime Minister will launch a new fund, backed by £20m a year of public money over the next ten years, to support development in Barrow-in-Furness. Barrow-in-Furness is a Cumbrian town home to the UK’s Astute class submarines and upcoming dreadnought programme.

Downing Street said the funding would provide grants to local organizations and improve transport and health projects in the area.

Demand for skilled workers in the nuclear industry is expected to increase by 50% over the next 10 years as the industry becomes increasingly important to UK energy and national security.

The move comes amid concerns about Britain’s defense spending levels, with two sitting ministers urging Sunak to increase defense spending to at least 2.5% of GDP in the face of Russia’s escalating aggression and concerns about stability in the Middle East. %.

There was no increase in defense spending in the spring budget, with Chancellor Jeremy Hunt telling MPs, “Our spending will increase to 2.5% [of GDP] “As soon as economic conditions allow,” without elaborating on how that would happen.

Defense Secretary Grant Shapps also admitted he wanted to see a “bigger budget” from the current level of just over 2%, and called for military spending to increase to 3% of GDP.

Sunak said the government had announced the biggest continued increase in defense spending since the Cold War and had “recently delivered billions of pounds more to strengthen our nuclear undertaking and rebuild stockpiles.”

Today’s announcement also includes a significant cash injection from industry leaders such as BAE Systems, Rolls-Royce, EDF and Babcock, who will invest £763 million in skills, jobs and education.

Ahead of a visit to Barrow-in-Furness on Monday, the Prime Minister said: “Safeguarding the future of our nuclear deterrent and nuclear energy industry is a vital national endeavour.

“In a more dangerous and competitive world, the UK’s continued maritime nuclear deterrent is more important than ever. Nuclear energy provides consumers with cheaper, cleaner, indigenous energy.

He added: “That’s why we’re investing in Barrow, the home of British submarines, and the future of jobs and skills in the UK’s booming nuclear industry.

“Today we welcome the next generation of nuclear enterprise that will keep us safe, keep our energy secure and lower our bills forever.”

Industry leaders have welcomed the plans with enthusiasm. Charles Woodburn, chief executive of BAE Systems, said: “Barrow is at the heart of the UK submarine enterprise and, as the guardian of our submarine design and construction capabilities, we are very important to our work on HMS Astute, HMS Intrepid and now. I am extremely proud of the role I played.” SSN-AUKUS Program. “

David Lockwood, chief executive of Babcock International, said the measures were “an excellent opportunity for the UK to strengthen the nuclear industry, which will help to increase the resilience of the UK’s independent deterrent,” and will support the UK’s energy security ambitions and net zero emissions targets.”