Finance Minister Rachel Reeves will announce Tuesday that Britain is investing over eight billion pounds in its submarine-building capacity. This investment will support firms such as defence group BAE Systems, and engineering multinational Rolls-Royce.

Keir starmer, the British Prime Minister, has promised the biggest sustained increase in British defense spending since the Cold War.

Following an independent review, Britain announced last week that it will increase its nuclear-powered submarine fleet from seven to up to 12 as a result of an independent assessment of its current military capability and ability to face future threats.

Reeves said that no cost was provided at the time, but in his speech on Tuesday, he will mention that the UK's sub-marine industrial base will be boosted by over six billion pounds, including at BAE Systems, and Rolls-Royce Submarines (a subsidiary of Rolls-Royce).

In a press release, the government stated that the investment will cover a four-year period of spending review and will enable companies to deliver the increased submarine production rate announced by the government last week.

Reeves is set to announce on Wednesday the results of the first multi-year review of spending, which includes an investment of 4 billion pounds in the Plymouth Naval Base over the next 10 years.

The Finance Minister will also announce investment in the redevelopment and a steel firm that makes components for submarines. ($1 = 0.7387 pound) (Reporting and editing by William James; Catarina demony)

(source: Reuters)