Naval gazing: 'Unhappiest place' in UK gets a lift from soaring defence budget

The end of the cold war brought lean times to the shipyards of Barrow-in-Furness. Now jobs, money and submarines are back

- Rachel Sylvester Political Editor

In the dock at Barrow-in-Furness, the nuclear-powered submarine rises out of the water like a giant blue whale. Its curved back and blunt conning tower are just visible but most of its body is submerged.

This is Agamemnon, the sixth of seven Astute-class attack boats that have been built by BAE Systems in the Cumbrian town. It was named with a keg of locally brewed beer smashed against its side.

The shipyard dominates Barrow. A third of the working-age population here is employed by BAE Systems. When a new vessel is launched, the whole town comes out to celebrate and schoolchildren line the streets waving flags.

David, 36, who is employed in the shipyard, says there is a "sense of awe" when workers see a finished submarine for the first time. He says Barrow feels proud to be making such a critical contribution to the nation's defences.

"We do things to help people stay safe in their beds at night," he says. "Shipbuilding is in our blood. It's part and parcel of being a Barrovian. I'd say about 60% of the people who live on my street work in the yard. I've got two girls, and hopefully they'll go into the shipyard eventually."

With Keir Starmer promising to spend 5% of GDP on defence and security by 2035, Barrow will be one of the main beneficiaries. Inside Devonshire Dock Hall, four Dreadnought submarines that will carry Britain's Trident nuclear weapons are being built. The shipyard will also construct up to 12 nuclear-powered submarines for the Royal Navy. The scale and length of these contracts mean jobs are guaranteed for the next 60 years.

Last year the Ministry of Defence spent £28.8bn with UK companies including BAE Systems - a real terms increase of £2.2bn on the previous year. As budgets continue to rise, ministers want to ensure that the money feeds through to boost prosperity in some of the poorest parts of the country.