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A defence firm has won a £1.8bn contract to maintain the Royal Navy’s fleet of ships and submarines over the next 15 years.

Thales said the deal with the Ministry of Defence (MoD) will support more than 450 highly skilled jobs across the UK, including creating more than 100 positions at its manufacturing site by the River Clyde in Glasgow.

The Maritime Sensor Enhancement Team contract will sharpen the focus on equipment availability, predicting problems – through AI innovations and data management – rather than reacting when they emerge.

By investing in new dockland facilities, AI, data analysis tools, and skills, it is hoped the turn around times of repairs will reduce, which will maximise the days the navy is ready to deploy ships and submarines at sea.

The contract will also support sonar – the ability to hear underneath water – masts, periscopes and electronic warfare equipment that enable the navy to detect and target potential threats.

Thales Glasgow site. Pic: Thales
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The Thales base in Glasgow. Pic: Thales

Announcing the contract on Friday, Defence Secretary Grant Shapps said: “In a time of global instability, it is imperative we minimise the time our ships and submarines are out for maintenance.

“This is another partnership with Thales UK and our outstanding UK defence sector that not only boosts national security but provides a boost to local communities and helps fuel economic growth.”

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Around 300 UK jobs from a previous Thales support contract will be sustained, and a further 150 science, technology, engineering and mathematics (STEM) jobs and apprenticeships will be created across Faslane, Glasgow, Plymouth, Portsmouth, Stockport, Somerset, Sussex and Bristol.

In July last year, Thales Glasgow was awarded a £169m contract to build the periscopes for the Royal Navy’s new Dreadnought vessels.

The Clyde base is one of the world’s most advanced naval manufacturing sites and has designed and built periscopes for every Royal Navy submarine since 1917.

Alex Cresswell, CEO of Thales in the UK, said: “Thales is delighted to strengthen our century-long partnership with the Royal Navy, and support its vital role in defending the UK and keeping the world’s critical sea lanes open.

“This £1.8bn contract with Thales will help keep more Royal Navy ships at sea for longer, by harnessing the latest developments in artificial intelligence, data analysis and improved dockland facilities.”

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Why Boris’s best mate is off to Reform

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Why Boris's best mate is off to Reform

👉Listen to Politics at Sam and Anne’s on your podcast app👈       

Former Conservative chairman and friend of Boris Johnson – Sir Jake Berry – is defecting to Reform UK, causing more problems for Tory leader Kemi Badenoch.

On today’s episode, Sky News’ Sam Coates and Politico’s Anne McElvoy discuss if his defection will divide parts of Reform policy.

Elsewhere, the Anglo-French summit gets under way, with Prime Minister Sir Keir Starmer hoping to announce a migration deal with French President Emmanuel Macron to deter small boat crossings.

Plus, chatter around Whitehall that No10 are considering a pre-summer reshuffle, but will it have any value?

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Australia to test CBDCs, stablecoins in next stage of crypto play

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Australia to test CBDCs, stablecoins in next stage of crypto play

Australia to test CBDCs, stablecoins in next stage of crypto play

The trial is part of Project Acacia, an initiative from the RBA exploring how digital money and tokenization could support financial markets in Australia.

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Starmer and Macron agree need for ‘new deterrent’ to stop small boat crossings

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Starmer and Macron agree need for 'new deterrent' to stop small boat crossings

Sir Keir Starmer and Emmanuel Macron have agreed the need for a “new deterrent” to deter small boats crossings in the Channel, Downing Street has said.

The prime minister met Mr Macron this afternoon as part of the French president’s state visit to the UK, which began on Tuesday.

High up the agenda for the two leaders is the need to tackle small boat crossings in the Channel, which Mr Macron said yesterday was a “burden” for both the UK and France.

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The small boats crisis is a pressing issue for the prime minister, given that more than 20,000 migrants crossed the English Channel to the UK in the first six months of this year – a rise of almost 50% on the number crossing in 2024.

Sir Keir is hoping he can reach a deal for a one-in one-out return treaty with France, ahead of the UK-France summit on Thursday, which will involve ministerial teams from both nations.

The deal would see those crossing the Channel illegally sent back to France in exchange for Britain taking in any asylum seeker with a family connection in the UK.

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However, it is understood the deal is still in the balance, with some EU countries unhappy about France and the UK agreeing on a bilateral deal.

French newspaper Le Monde reports that up to 50 small boat migrants could be sent back to France each week, starting from August, as part of an agreement between Sir Keir and Mr Macron.

A statement from Downing Street said: “The prime minister met the French President Emmanuel Macron in Downing Street this afternoon.

“They reflected on the state visit of the president so far, agreeing that it had been an important representation of the deep ties between our two countries.

“Moving on to discuss joint working, they shared their desire to deepen our partnership further – from joint leadership in support of Ukraine to strengthening our defence collaboration and increasing bilateral trade and investment.”

It added: “The leaders agreed tackling the threat of irregular migration and small boat crossings is a shared priority that requires shared solutions.

“The prime minister spoke of his government’s toughening of the system in the past year to ensure rules are respected and enforced, including a massive surge in illegal working arrests to end the false promise of jobs that are used to sell spaces on boats.

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“The two leaders agreed on the need to go further and make progress on new and innovative solutions, including a new deterrent to break the business model of these gangs.”

Chris Philp, the shadow home secretary, seized on the statement to criticise Labour for scrapping the Conservatives’ Rwanda plan, which the Tories claim would have sent asylum seekers “entering the UK illegally” to Rwanda.

He said in an online post: “We had a deterrent ready to go, where every single illegal immigrant arriving over the Channel would be sent to Rwanda.

“But Starmer cancelled this before it had a chance to start.

“Now, a year later, he’s realised he made a massive mistake. That’s why numbers have surged and this year so far has been the worst in history for illegal channel crossings.

“Starmer is weak and incompetent and he’s lost control of our borders.”

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