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Home Latest

Critical report highlights AUKUS shortcomings and failings

Nigel Thompson by Nigel Thompson
April 29, 2026
in Latest, News
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The SSN-AUKUS will replace existing Astute Class submarines. Picture: Royal Navy

There are calls for more to be done to speed up vital regeneration work in Barrow to house workers who will build the next generation of nuclear submarines as part of a project which is ‘too big to fail.’

A committee of MPs is also urging Prime Minister Sir Keir Starmer to take more interest in the AUKUS project, a collaboration between Australia, UK and US to build new attack submarines and establish closer defensive ties.

A year after it was launched, the results of an inquiry into AUKUS has been published with a lengthy list of actions for contractors, councils and politicians.

The report highlights shortcomings and failings which include:

  • ‘political leadership – essential to secure the success of a programme of AUKUS’ length, cost, and complexity – has faded.’
  • a lack of meaningful public engagement
  • speculation the UK’s submarine industrial base could suffer from a “skills drain”
  • ‘it is deeply concerning that there are signs that the investment pipeline that underpins that commitment {to AUKUS} has already faltered.’

Barrow, which was hailed by Sir Keir as ‘a blueprint for positive impact of defence spending,’ comes in for particular scrutiny.

The Defence Committee, which is chaired by Tan Dhesi and whose members include the Barrow and Furness MP Michelle Scrogham, commented that despite a recognition that the town is vital to AUKUS ‘there are concerning signs that regeneration efforts are not being progressed with the urgency required.’

Giving evidence, the chief executive of Team Barrow Peter Anstiss admitted there was ‘some degree of scepticism’ about the work of the programme while BAE Systems Submarines chief executive Steve Timms a 10-year plan and £200million allocated to it was ‘is not enough’ to completely revitalise a town that until last year MPs were told was reducing in population.

In December Lord Case who chairs Team Barrow, told Business Crack, 2026 would be the year of delivery.

The call for more, long term investment hit home with MPs who are calling for ‘timely investment in upgrading the BAE Systems shipyard at Barrow’ warning though that ‘this has already slipped’ and adding that any further failures could lead to delay in delivering SSN-AUKUS’ with serious consequences both for UK national security and for credibility with AUKUS partners.

They conclude that ‘efforts to regenerate Barrow to attract and maintain the workforce required to deliver SSN-AUKUS must be properly funded.’

Responding, BAE Systems told Business Crack: “We continue to work closely with our customers and partners on the SSN-AUKUS programme as we advance progress on the detailed design phase and procurement of long-lead items for the new submarines.

“Substantial work has also commenced to increase the capability, capacity and resilience of infrastructure, both in Barrow and across the supply chain, to meet future delivery rates and secure the long-term benefits of the submarine enterprise.”

The town’s MP has also reiterated her desire for more long-term investment which the committee says should be a commitment for several parliamentary sessions.

Mrs Scrogham said: “A major part of the equation is providing the support and investment needed to properly redevelop Barrow after years of neglect and underinvestment.

“Our report is very clear about the progress that this Government has made with the establishment of Team Barrow and £220m of initial investment but it also sets out the scale and urgency of the task ahead and the need for additional funding to provide the necessary improvements in housing, healthcare, town regeneration, transport and education.”

We approached Westmorland and Furness Council for comment about claims that there was a lack of urgency over regeneration work but the authority declined to comment.

A Team Barrow spokesman said: “We welcome the publication of the House of Commons Defence Committee’s AUKUS inquiry report and its recognition of the scale of investment required in Barrow to support delivery of the programme. In particular, we welcome recommendations for additional funding.

“As members of Team Barrow made clear in our oral evidence to the committee, delivering the ambitious 10-year plan for Barrow will require further public and private sector investment, alongside the £220 million already committed by Government.

“We also agree with the committee’s assessment that it is essential to demonstrate tangible signs of progress on the ground, and that means pivoting decisively from planning into delivery.

“Team Barrow is committed to transforming the town to enable the successful delivery of the AUKUS programme, by creating a place where people can live, work and thrive, and where our community sees and feels the benefits of this once-in-a-generation opportunity.”

The committee also reported that there was speculation that while the partnership between all three countries could bring benefits, the lure of opportunities in Australia could pose a risk to workforce retention in Barrow.

Last week Cumbria Crack reported that a local councillor who is also a BAE Systems employee was standing down to take up a two-year role in Australia.

Giving evidence to the committee Peter Anstiss, chief executive of Team Barrow, said he was not unduly concerned about the prospect.

The company told Business Crack the workforce in Barrow has continued to grow with over 16,000 staff employed and applicant numbers increasing from 4,000 in 2024 to over 6,000 in 2025.

As well as visiting Barrow the Defence committee also travelled to Virginia in the US and Adelaide and Perth in Australia and heard evidence in five sessions held between September and December 2025.

The report comes as the availability of Royal Navy submarines continues to cause concern.

HMS Anson, the fifth Barrow-built Astute class, was despatched to Australia only to be recalled to the Gulf.

Boat six HMS Agamemnon was commissioned last year but remains in Barrow while the seventh and final class member HMS Achilles is still under construction. The SSN-AUKUS programme will replace the Astute class with the RN expecting delivery from the
late 2030s.

The Ministry of Defence said the Government remained committed to the project and reiterated a plan to produce a submarine every 18 months: “As set out in the Strategic Defence Review, we remain fully committed to delivering next-generation capabilities through AUKUS into the Armed Forces of all three countries.

“Working alongside the USA and Australia, we are already delivering across the programme, investing over £6 billion to deliver continuous submarine production and create thousands of jobs across the country.

“All three Allies have declared full steam ahead for AUKUS, and we have signed a new AUKUS treaty with Australia underpinning £20bn in exports potential. 

“Through our government’s record investment in Barrow and Derby, we will produce a submarine every 18 months and will allow us to grow our nuclear-powered attack submarine fleet to up to 12.”

While the Government has moved to reassure the committee that AUKUS is being taken seriously and will respond in more detail in the future, the job of convincing taxpayers that investment in Barrow and the wider project represents value for money is another area that MPs say needs attention.

Greater publicity about a programme and a product that’s often shrouded in secrecy could be a hard battle to win.

Tags: ConstructionNuclear
Nigel Thompson

Nigel Thompson

Nigel Thompson is a familiar voice and face across Cumbria. He explores Cumbria's business community and highlights the variety of work underway in all sectors.

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