New owner of Cammell Laird shipyard, Balaena Group, says Government announcement of an extra £15bn of defence spending offers a ‘major opportunity for Merseyside’. Tony McDonough reports

Prime Minister Sir Keir Starmer’s announcement of an extra £15bn for defence spending could lead to more work for Cammell Laird shipyard in Cammell Laird, its new owner claims.

On Tuesday Mr Starmer said the Government would spend £270bn on defence over the next four years. This will see extra capital spending for all three branches of the forces including the Royal Navy – and that is likely to be good news for UK shipyards.

In early June LBN reported that new legislation around Government procurement could see more work coming to British shipyards. The Procurement Act 2023 would likely see an increase in the volume of MoD-related work for the UK shipbuilding sector.

Cammell Laird in Birkenhead is already undertaking work on UK defence contracts via its partnership with BAE Systems. In March LBN revealed the yard had reached a major milestone in the Royal Navy Type 26 frigate build programme.

Workers are building sections of the new advanced anti-submarine warfare vessels on behalf of main contractor BAE Systems and have completed the bow for HMS Birmingham.

Later on in June it was announced that Balaena, a Cornwall-based maritime engineering and shipbuilding group, has acquired Cammell Laird’s parent company APCL Group. This also includes two other shipyard and engineering businesses, A&P Tyne and A&P Falmouth.

On Tuesday Balaena founder and chief executive Simon Gillett said Cammell Laird was in a strong position to benefit from the increased spending on defence. He added: “Birkenhead has one of the richest shipbuilding and marine engineering traditions anywhere in the world. 

“Today’s announcement recognises that Britain needs strong industrial capability if it is to strengthen national security.

“The Government is signalling a significant change in how Britain’s defence and security will be secured. Balaena fully supports that ambition.”

Simon pointed out that the 700-strong Laird’s workforce combines generations of experience with modern engineering expertise. 

He explained: “We are an agile organisation capable of responding quickly to the needs of the Royal Navy and delivering complex programmes efficiently.

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“Defence investment is also investment in communities. It supports apprenticeships, local businesses, high-quality manufacturing jobs and long-term economic growth.”

“We stand ready to work with Government and our partners to deliver the capabilities Britain needs, on time, on budget and to the highest standards.”