On July 29, Prime Minister Andy Burnham announced £8.4 billion for Dreadnought, including £5.9 billion for BAE and £2.5 billion for the wider supply chain and apprenticeships.
Burnham’s appointment of John Healey — the former defense secretary — as the chancellor, has cheered Australian officials. “That shows to me that they’re putting defense and national security at the heart of their economic agenda as well as their defense agenda,” said James Paterson, the shadow defense minister, who is at the heart of debates about AUKUS accountability.
The military clock
Barrow’s local problems translate into military risk through the gaps in Australia’s submarine capability.
Paterson has identified two potential gaps in Australia’s submarine capability that need planning.
The first comes between the Collins-class submarines and Virginia-class submarines in the early 2030s. The second comes between the Virginias and SSN-AUKUS in the early 2040s.
Australia’s interim options include rotating British Astute-class submarines through waters around Australia and acquiring second-hand U.S. Virginia-class submarines in the early 2030s.
The Commons report says the Royal Navy’s Astute fleet is the smallest the U.K. has had in decades: In the first half of 2024, none of the five Astute-class boats completed an operational deployment, according to the report.
Sidharth Kaushal, a senior research fellow specializing in sea power at Royal United Services Institute, told POLITICO a deployment to Australia would stretch it to the limits of its capacity.
“What I don’t want to see is fatalism,” Paterson said. “These are solvable problems. We’ve got time to get this right, as long as we are honest and realistic about it now.”
A shared industrial gamble
The U.K. is designing and building its own SSN-AUKUS boats before Australia builds its fleet.
That front-loads risk onto Britain and gives the U.K. a powerful incentive to get the program right for its own national security.
Burnham says British money should be spent on British workers, firms and skills in places written off for 40 years. Conroy supports this effort, seeing a stronger British yard as part of northern Britain’s economic rejuvenation, which will ultimately benefit Australia.


