THE government has awarded a design contract to BAE to assemble submarines as part of a major agreement with America and Australia.

AUKUS submarines are due to be built in Barrow as part of the agreement which will see Australia work with the two countries to develop new submarines.

According to reports, a contract for the 'detailed design and long lead items' was signed with BAE.

It represents the first stages of work on the Ship Submersible Nuclear AUKUS, the future class of attack submarines that will replace the Astute class boats.

Details of the contract were shared in a Ministry of Defence minute to parliament.

It said: "The purpose of this Minute is to notify Parliament of reportable contingent liabilities that the Ministry of Defence (MOD) intends to incur as a result of placing the Detailed Design and Long Lead Items contract with BAE Systems for the Ship Submersible Nuclear AUKUS (known as “SSN-A”), the future class of attack submarines to replace the Astute Class.

"Negotiations are ongoing and the contingent liabilities will come into force on signature of the contract."

The first phase of the work includes fabrication of steel in Barrow. 

As part of the AUKUS pact, the UK’s submarines will primarily be constructed in Barrow, while Australia will work on developing its submarine industrial base over the next decade.

Australian submarines are due to be built in South Australia, with some components produced in the UK.

BAE will play a key role in the programme and is expanding its workforce by 6,000 staff.

The Government announced British involvement in building submarines as part of the agreement in March.

The next generation of Barrow-built hunter-killer submarines, SSNR, will be used by both the UK and Australian navies. 

Until the SSNR submarines are built, president Joe Biden announced that Australia will be buying up to five Virginia-class submarines from the US.

Barrow MP Simon Fell said that the deal represented a 'major vote of confidence in the shipyard'.