£26bn infrastructure programme to drive defence construction pipeline

The Government has unveiled a £26 billion programme to modernise the UK's three principal naval bases, creating one of the largest long-term public sector construction pipelines for defence infrastructure in decades.

The ten-year investment will fund extensive upgrades at HM Naval Base Clyde, HM Naval Base Devonport and HM Naval Base Portsmouth, with projects ranging from new docking facilities and waterfront infrastructure to accommodation, engineering facilities and research buildings.

Described by the Ministry of Defence as the biggest programme of naval infrastructure investment since the end of the Cold War, the works form part of the Government's wider Defence Investment Plan and are intended to improve operational readiness while supporting skilled employment across the UK.

The programme will include the construction of new dock facilities, regeneration of existing military buildings, upgraded engineering infrastructure, research and development facilities and new single living accommodation for Armed Forces personnel.

HMNB Clyde in Scotland is expected to receive the largest share of the investment, with £15.1 billion allocated to transforming the Royal Navy's submarine base into a modern operational facility. The investment is expected to generate significant economic activity across western Scotland through contractors, consultants and specialist supply chains.

Alongside the naval programme, the Government confirmed more than £240 million of RAF support contracts benefiting Scotland, while also announcing the acquisition of the Finnart Oil Terminal to expand sovereign fuel storage capacity and support future infrastructure improvements linked to the Clyde Transformation Programme.

Separate investment of £20 million will also support the redevelopment of Inchgreen Marine Park, helping revitalise one of the UK's largest operational dry docks while creating a new skills centre and around 350 direct jobs.

The scale and duration of the programme is likely to generate substantial opportunities across the construction sector, spanning civil engineering, marine infrastructure, building refurbishment, specialist mechanical and electrical installations, accommodation delivery and long-term facilities upgrades.

Defence Minister Luke Pollard said the investment would provide the infrastructure needed to strengthen the Royal Navy's operational capability while supporting thousands of skilled jobs across Scotland, the South West and the Solent.

Beyond its military significance, the programme highlights the growing role of defence spending in supporting the UK's construction and property sectors. As geopolitical priorities increasingly shape public investment, major military estates are becoming an important source of long-term regeneration, infrastructure delivery and specialist building projects, providing contractors with sustained pipelines of work extending well into the next decade.