Hundreds of jobs in Merseyside are set to be secured and expanded following a £10 billion investment in the UK's shipbuilding industry. The deal, which includes a major export agreement with Norway, directly benefits the Cammell Laird shipyard in Birkenhead, where sections of the new Type 26 warships are being constructed.
Defence Secretary John Healey visited the historic shipyard to highlight the government's commitment, confirming that the programme will support the local economy and strengthen national security. The visit took place as the Labour Party Conference commenced in Liverpool.
Key Takeaways
- A £10 billion investment is boosting the UK's shipbuilding sector, with a significant impact on Merseyside.
- Cammell Laird in Birkenhead will see substantial job growth beyond the 150 roles already supported by the Type 26 warship programme.
- The deal involves building advanced Type 26 frigates for both the Royal Navy and the Norwegian Navy.
- This strategic partnership strengthens NATO's northern flank and supports 4,000 jobs nationwide.
Defence Investment Bolsters Cammell Laird
The Cammell Laird shipyard on the River Mersey is a central part of a major government defence initiative. The facility is currently tasked with producing key sections for the Royal Navy's next-generation Type 26 frigates.
According to government figures, the programme already sustains over 150 jobs at the Birkenhead site. This number is expected to increase significantly as production ramps up, bolstered by a landmark export agreement with Norway.
Healey's Visit to Birkenhead
During his visit, Defence Secretary John Healey met with workers and emphasised the dual benefits of the investment. He stated that the government aims to use defence spending as a catalyst for economic growth across the country.
“Here at Cammell Laird, we’re already making key parts for our Royal Navy frigates. And our £10 billion Norway deal, the biggest ever British warship deal, will mean a boost to 150 jobs for this yard and many more in the years to come,” Healey said.
He added that the investment reflects a broader commitment to creating more jobs, investment, and skills in the North West as defence spending increases.
A Strategic UK-Norway Alliance
A cornerstone of the £10 billion programme is Norway's decision to procure Type 26 frigates that are identical to those being built for the Royal Navy. This move solidifies a deepening strategic partnership between the two NATO allies.
Combined Naval Power
The UK and Norway will operate a combined fleet of 13 advanced frigates, comprising eight for the Royal Navy and at least five for the Norwegian Navy. This collaboration enhances interoperability between the two forces.
The warships are specifically designed for anti-submarine warfare. Their primary mission will be to detect, track, and counter hostile submarines, a capability deemed critical for reinforcing NATO's northern flank, particularly in response to ongoing Russian aggression.
National Economic and Industrial Impact
While Merseyside is a key beneficiary, the economic impact of the Type 26 programme extends across the United Kingdom. The government reports that the initiative will support a total of 4,000 jobs nationwide well into the 2030s.
The supply chain for the warships involves over 400 UK businesses. Within the North West region alone, 47 businesses are contributing to the project, providing components, technology, and specialised services.
Cammell Laird's Shipbuilding Legacy
Cammell Laird has been a pillar of British shipbuilding since the 1800s. The Birkenhead yard has a distinguished history of constructing major vessels for the Royal Navy, including battleships, aircraft carriers, and submarines. This new contract continues that long-standing tradition.
The government has presented this deal as a clear example of its strategy to revitalise the UK's shipbuilding industry, turning it into a driver of national growth and technological innovation.
Future Skills and Local Growth
The long-term nature of the Type 26 programme is expected to provide stability and create opportunities for apprenticeships and skills development in the region. The project ensures a pipeline of work for Cammell Laird, securing its role in the UK's defence infrastructure for the next decade and beyond.
Defence Secretary Healey highlighted this aspect of the plan, stating, “This is part of Labour’s commitment that as we increase defence investment, and win more exports for Britain, we see here in the North West, more jobs, more investments, more skills for the future.”