New national shipbuilding strategy launched by government

The UK’s shipbuilding industry will be revitalised through a refreshed national strategy, the government has announced.

First published in 2017, the National Shipbuilding Strategy (NSbS) outlined ambitions to transform naval procurement, securing export and design contracts for British naval ships.

Building on that success, the new release outlines the government’s further ambitions to reinvigorate the whole British shipbuilding industry while contributing to its levelling up mission to boost productivity, pay, jobs and living standards across the country.

Over £4bn of government investment hopes to galvanise and support shipyards and suppliers across the UK, with new measures including better access to finance, vital skills-building, and funding for crucial research and development into greener vessels and infrastructure.

Designed in partnership with industry and delivered by the recently formed National Shipbuilding Office (NSO), the NSbS Refresh will also deliver a pipeline of more than 150 new naval and civil vessels for the UK government and devolved administrations over the next 30 years.

The vessels will include large warships, Border Force cutters, lighthouse vessels and the new National Flagship.

Defence secretary and shipbuilding lead, Ben Wallace, said: “With significant government investment, we will be levelling-up across our shipbuilding, workforce, from shipyard to supplier, from procurement to designer, creating tens of thousands of new employment opportunities, boosting living standards and pay.

“Our refreshed strategy will see the sector galvanised at a crucial time for our economy and see a vital part of British industry expand and flourish.”

The shipbuilding industry currently supports 42,600 jobs across the UK and contributed £2.8bn to the economy in 2020. Encouraging further investment and development, the refreshed strategy sets out a vision for the prosperous future of the UK’s shipbuilding industry, helping ‘Build Back Better’ and supporting the government’s drive to level up all parts of the UK.

An ambitious pipeline of naval vessels including Fleet Solid Support (FSS), Type 26 and Type 31 ships will bolster the Royal Navy whilst providing opportunities for UK shipyards.

Encouraging investment in domestic shipyards, the pipeline seeks to maximise the social value contribution shipbuilding can make in the UK whilst balancing the need to deliver value for money and solutions that fully meet the requirements of the Royal Navy.

The strategy also includes a range of interventions from across Government to support the sector. A new Home Shipbuilding Credit Guarantee Scheme (HSCGS) will give UK shipyards access to finance for underwriting domestic contracts. This will level the playing field with competitors’ export credit guarantees and ensure UK shipbuilders have a fairer chance of securing valuable contracts.

The NSbS Refresh will also establish a new UK Shipbuilding Skills Taskforce, led by the Department for Education. The taskforce will work with industry and training providers across the UK to identify and address skills gaps, ensuring the UK continues to develop and nurture future-focused skills and knowledge to help our shipbuilders deliver world-class vessels.

With the shipbuilding supply chain spread across all parts of the UK, the taskforce will work jointly with the Devolved Administrations in Scotland, Wales and Northern Ireland to ensure shipbuilders and the wider supply chain can access the skills they need.

A new Maritime Capability Campaign Office (MCCO) within the Department for International Trade will coordinate export support across government and industry. The MCCO will use robust analysis to improve our understanding about global markets, helping maritime suppliers to win export orders and increase UK market share.

This refreshed NSbS moves beyond the Ministry of Defence’s commitment to double its shipbuilding investment over the life of this Parliament to over £1.7 billion a year - supported as part of the £24 billion increase in Defence spending over the next four years. This will continue to support jobs and skills around the UK.

Ministry of Defence
www.gov.uk/mod