The government today announced a landmark defence agreement with Japan and Italy to develop underwater drones for the Indo-Pacific region, a move that promises to safeguard thousands of skilled engineering jobs in the UK but does little to ease the cost of living crisis at home.
Under the trilateral pact, Britain will lead the design and production of autonomous underwater vehicles intended to patrol sea lanes and counter threats from state rivals. The project is expected to sustain 2,500 jobs in BAE Systems facilities in Barrow-in-Furness and Rolls-Royce sites in Derby, both areas that have seen factory closures and wage stagnation over the past decade.
“This is a vote of confidence in British engineering and a sign that the government understands the importance of high-skilled manufacturing to our national security,” said a Downing Street spokesperson.
But for workers in those same towns, the announcement comes as energy bills are forecast to rise again and food inflation remains stubbornly above 4 per cent. The Joseph Rowntree Foundation reported this week that one in five households in the North West is now in fuel poverty, up from one in eight in 2019.
“It’s good news for the lads on the shop floor, but it doesn’t put bread on the table for the rest of us,” said Margaret O’Brien, a retired care worker in Barrow. “My pension goes up by a pittance while my gas bill doubles. I don’t see how a robot submarine helps with that.”
The government argues the deal will boost the “real economy” by securing long-term contracts for British firms. The Ministry of Defence estimates the project will contribute £1.2 billion to GDP over the next decade, with spin-off benefits for smaller suppliers in the supply chain.
But critics point out that the Indo-Pacific focus is a geopolitical distraction from domestic economic woes. The UK’s trade deficit with the region has widened to £18 billion, while the government’s own levelling-up agenda has stalled: average wages in the North are still £4,000 a year lower than in London.
“There’s a mismatch between where the jobs are and where the need is,” said Laura Pidcock, a former Labour MP and now director of the People’s Assembly campaign group. “We’re pouring money into high-tech defence while schools, hospitals and railways crumble. Workers in the North want security, not just a job programme for the few.”
Unions have given a cautious welcome. The GMB union, which represents BAE workers, said it would press for guarantees that the new roles come with decent pay and conditions. “We need to make sure these are not just a handful of highly paid engineers but a whole ecosystem of skilled work that supports families,” said a GMB regional organiser.
However, the government has yet to publish a full analysis of the local employment impact. The National Audit Office warned last year that major defence projects often create fewer jobs than promised and can leave regions vulnerable to cutbacks when contracts end.
For the people of Barrow and Derby, this is a story as old as the industrial revolution: a big announcement, a brief burst of hope, but the same old struggle to make ends meet. The underwater drones may be a technological marvel, but they won’t bring down the price of a loaf of bread.
