Scotland secures a groundbreaking £10 billion warship contract under Boris Johnson's National Shipbuilding Strategy
The UK and Norway have signed a historic defence agreement worth £10 billion, strengthening their strategic partnership and boosting naval capabilities in the face of increasing threats in northern Europe.
The deal, rooted in the Conservative vision for Britain's shipbuilding future, will see the UK supply Norway with Type 26 frigates. This landmark agreement not only secures long-term work for Scottish yards but also underlines the global reputation of the Type 26 frigate design for its cutting-edge capability.
In July 2017, Defence Secretary Sir Michael Fallon officially initiated construction of the first Type 26 frigate, HMS Glasgow, at Govan shipyard, marking the beginning of the construction for the Royal Navy's fifth warship, HMS Sheffield. A £3.7 billion deal for three Type 26 frigates was signed in the same month, locking in long-term work for Scottish yards and UK suppliers.
The deal builds directly on the foundations laid by successive Conservative Governments, whose investment, long-term contracts, and strategic planning revitalised the Clyde yards and secured thousands of skilled jobs. The decision to support conservative governments in steering long-term contracts and investments into the shipyard on the Clyde was made by those conservative governments themselves.
The Type 26 frigate design has also been chosen by Australia and Canada for their own Navies, further underscoring its global reputation. The UK's investment in its shipbuilding industry aims to revitalise it and make the UK a world-renowned shipbuilding power.
The deal will support 2,000 jobs at BAE Systems' shipyards on the Clyde and a further 2,000 roles across the UK maritime supply chain until the late 2030s. Babcock is creating over 1,000 new jobs at their advanced manufacturing and shipbuilding facility in Rosyth, Scotland.
The National Shipbuilding Strategy (NSbS) outlines ambitions to transform naval procurement, securing export and design capabilities. The NSbS, launched in March 2022 by the Boris Johnson Government, pledged over £4 billion of investment in shipyards over three years to drive jobs, technology development, and exports.
The historic deal secures jobs and economic growth in Scotland, with 103 Scottish businesses, including 54 small and medium-sized enterprises, set to benefit directly from the agreement. This investment will ensure that Scotland will remain at the heart of NATO's naval strength for generations to come.
In March 2025, MPs across the political spectrum acknowledged that the last Conservative Government's commitment to the Type 26 and Type 31 frigate programmes secured long-term employment and vital apprenticeship opportunities in Scottish shipyards and across the wider maritime supply chain.
The new UK-Norway defence agreement will deepen industrial cooperation and spur growth and innovation, further strengthening the strategic partnership between the two nations. The deal strengthens both nations' strategic partnership in the face of increasing Russian threats in northern Europe.
In conclusion, the UK-Norway frigate deal is a significant step forward in strengthening both nations' naval capabilities and strategic partnership. The investment will not only secure jobs and economic growth in Scotland but also position the UK as a world-renowned shipbuilding power.
