Type 26 frigate under construction at BAE Systems Glasgow shipyard

Why should you support a £10 billion warship deal that is meaningless for you?

Last Updated: September 1, 2025By

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The UK’s Labour government is trumpeting a £10 billion deal to supply Norway with at least five new Type 26 warships, hailing it as the “biggest ever warship export deal.”

Here’s what it is: Norway is paying a huge sum for UK-built frigates, which will be constructed at BAE Systems’ shipyards on the Clyde.

But let’s make sure we understand that it isn’t a huge boost to the Treasury, or to your household finances.

Ordinary people in the UK will not feel any benefit at all.

This is excellent news for BAe Systems, the private arms company that will pocket the money, and for its shareholders, who can expect healthy dividends.

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It’s also useful to the UK government, which wants to bask in the glow of “defence prestige” and parade this as evidence that Britain is still a world leader in shipbuilding.

But pretending that this deal makes you, your family, or your community better off is a lie.

A victory in an arms race

Yes, the UK has beaten France, Germany and the US to Norway’s contract.

Yes, there will be some tax receipts.

And yes, ministers claim the order will support 4,000 jobs “well into the 2030s” (though history shows such promises are often exaggerated).

But here are the facts.

There will be no £10 billion windfall for you

The value of the deal that is being waved around is £10 billion – but don’t be fooled into thinking this money is heading into public services, or that it will reduce your bills, fix the NHS or fill the black hole in your council’s budget!

It won’t.

That money goes straight to BAe Systems and its subcontractors. The Treasury will skim a little off the top in corporation tax and PAYE, but compared to the headline number, the public benefit is minimal.

Meanwhile, the opportunity cost is huge. Public money and political willpower are being poured into propping up the military-industrial complex while other sectors — renewable energy, rail, housing and others — are starved of support.

Those are the areas that could bring lasting, broad-based prosperity, create jobs across the country, and bring down household costs.

Instead, we have a deal that locks the UK further into the business of war.

Jobs secured — but not created

The government says 4,000 jobs will be “supported” by the deal, including 2,000 in Glasgow.

But most of these jobs already exist.

The Clyde yards are already building eight Type 26 frigates for the Royal Navy.

This Norway deal helps secure those roles for longer – or at least, many of them – but it doesn’t bring about a jobs boom.

And let’s be honest: such numbers are notoriously rubbery. When governments say “supported,” it often means “counting everyone remotely linked to the supply chain.”

The true number of new, secure jobs could be far smaller.

Who really benefits?

Follow the money.

The lion’s share of the £10 billion goes to BAe Systems, a private corporation with a long history of government dependence.

Shareholders will be the real winners, with taxpayers subsidising the industry through political backing, export credit guarantees and defence spending.

Some British businesses in the supply chain will get contracts. Skilled shipyard workers will stay in employment.

But for the overwhelming majority of people, the only thing they will “gain” is another round of ministerial photo-ops and headlines about the UK “winning” abroad.

Could the UK actually lose out?

There’s another problem: Norway wants its first frigate delivered by 2029.

The Royal Navy, meanwhile, is still waiting for its own ships.

If deliveries to Norway take priority, Britain’s fleet could be delayed.

In that case, the taxpayer may end up footing the bill to keep ageing Type 23 frigates in service for longer, at significant extra cost.

So what looks like a £10 billion “victory” could end up creating new liabilities for the public purse.

“National security for working people”?

Keir Starmer has wrapped this announcement in his favourite slogan: “National security for working people.”

But what does that actually mean?

The “security” here is military projection — the ability to project British military power abroad, to hunt Russian submarines and to look relevant in NATO.

It is not “security” in the sense that matters most to ordinary people: secure wages, affordable homes, or a stable NHS.

For a few thousand skilled workers, yes, there will be job security.

But for the country as a whole, the benefit is purely symbolic — pride in beating France and Germany to the deal, headlines about “world-class” shipbuilding, and the warm glow of prestige.

That is not national security for working people.

It is a public relations hit for the government and profits for BAE.

Vox Political‘s verdict

This £10 billion deal is excellent news for a private arms company, its shareholders, and a government keen to sell itself as tough on defence.

But it won’t shorten NHS waiting lists.

It won’t ease the cost-of-living crisis.

It won’t plug the holes in local councils’ budgets or lift people out of poverty.

For most of us, the material gain will be nothing at all.

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