Britain and Australia Agree Twenty Billion Pound Deal for Nuclear Submarines as Aukus Future Faces US Scepticism

Britain and Australia have reached a pivotal agreement to construct nuclear-powered submarines worth £20 billion, marking a significant investment in defence infrastructure and reinforcing their commitment to shared security interests. The landmark deal arrives amid ongoing doubts from members of the US administration over the future of the Aukus partnership, the trilateral security pact with the United States.

The deal will see up to twelve advanced attack submarines built in the United Kingdom, with both the Royal Navy and Royal Australian Navy slated to operate the new SSN-Aukus class vessels starting in the late 2030s. This extensive programme is forecast to create around 21,000 skilled jobs, primarily based in Derby and Barrow-in-Furness, supporting the broader UK industrial base as well as local economies.

Senior UK ministers, Foreign Secretary David Lammy and Defence Secretary John Healey, underscored the importance of the agreement during their visit to Australia, describing it as a cornerstone of Britain’s defence relationships. Alongside the submarine programme, the pact will foster joint research in emerging technologies including hypersonic missiles and quantum computing.

British officials voiced optimism that President Trump will eventually endorse the Aukus arrangement, despite recent scepticism inside the Pentagon. Elbridge Colby, the US undersecretary of defence for policy, has called for a review of Aukus amid concerns regarding the transfer of five Virginia-class submarines to Australia. This interim measure is intended to cover the gap between the ageing Australian Collins-class fleet and the entry into service of the new Aukus submarines.

Colby’s stance centres on the strategic risks associated with reducing America’s own nuclear submarine capabilities at a time of heightened tensions in the Asia-Pacific, particularly around Taiwan. Although recent Pentagon decisions have cast uncertainty on aspects of Aukus, Prime Minister Keir Starmer maintained that the project is advancing as planned.

Healey and Lammy’s visit also included an inspection of HMS Prince of Wales in Darwin, underscoring Britain’s growing military profile in the Indo-Pacific. Critics within the Trump administration have questioned this shift in focus, suggesting that the UK should prioritise European defence, leaving Pacific affairs largely to the US. Despite such differences, the new agreement with Australia cements the UK’s intent to remain a key player in global security partnerships and high-value defence manufacturing for decades to come.