UK defies defense budget uncertainty as selected bidder announced for £1.6 billion Royal Fleet Auxiliary contract, says GlobalData

Following the news that the UK’s Ministry of Defence (MoD) has selected Team Resolute, a consortium of UK firms, as the preferred bidder to construct three support vessels for the Royal Navy;

Madeline Wild, Aerospace, Defense & Security Analyst at GlobalData, a leading data and analytics company, offers her view:

“The selection of Team Resolute for the Navy contracts marks the UK’s commitment to the British defense industry, and more precisely its strong shipbuilding tradition—despite recent uncertainty over the shape of the future UK defense budget. The £1.6 billion contract demonstrates how disagreements over the percentage of GDP that the UK should spend on defense will not wholly disrupt the UK’s ambitions to foster economic growth through targeted domestic defense spending.

“The MoD no longer follows ‘global competition by default’, instead utilizing the millions of pounds of defense spending as an investment tool to improve the social and economic position of regions across the UK.

“Final construction will take place at the Harland and Wolff’s Belfast shipyard and will be the first vessels constructed there since 2003. This is a notable pivot away from the Scottish shipyards that have been responsible for the construction of many Royal Navy surface vessels, including the Type 26 and Queen-Elizabeth Class carriers.

“The move from Scotland to Northern Ireland will allow the economic and social value of domestic defense spending to be felt across the UK, spread between regions and reinvigorating historic shipbuilding hubs.

“Beyond Westminster’s debates around the whether the defense budget will reach 3% by 2030, the MoD is continuing to fulfil its commitments made under the National Shipbuilding Strategy Refresh by investing in UK shipyards, creating a range of jobs across the industry and the UK. The support vessels themselves will also be an asset to the Royal Navy, undertaking essential support and logistics roles essential for the successful operation of the Carrier-led Maritime Strike Group.”

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