UK to unveil nuclear submarines deal with Australia, sources say

An enthusiastic Rishi Sunak has told ministers to expect a positive outcome next week when he travels to San Diego to unveil a deal to supply nuclear-powered submarines to Australia as part of the Aukus pact with the US.

Multiple sources said they believed the UK had succeeded in its bid to sell British-designed nuclear submarines to Australia, a deal that will safeguard the long-term future of the shipyard at Barrow-in-Furness.

A senior minister said Sunak had told colleagues he was delighted by the outcome of the negotiations, which have been going on for 18 months and have presented Australia with a choice between a British or a US design, based on the existing Astute or Virginia class submarines.

A second source outside government with knowledge of the talks said they had also been told to expect a British design success when the deal is announced on Monday, although any final submarine will also make heavy use of US technology.

Supplying Australia with a nuclear-powered submarine was the centrepiece for the Aukus defence pact, announced in September 2021, with the US and UK agreeing to share secret reactor technology in a surprise deal, so Canberra could dump an alternative diesel-powered design from France.

The expectation, one source indicated, was that Australia would work jointly on a design for a next generation submarine with the UK, evolving from the existing Astute submarine design, although it may not be seaworthy until the 2040s because of the complexity of the work.

Defence experts said the time it would take to build the new submarines meant that there may be some related short-term developments. The US is keen to be able to base its nuclear submarines in Australia, making it easier to patrol the South Pacific, as it seeks to retain naval parity with China.

A No 10 spokesperson said they could not pre-empt any future announcements.