Trident: Philip Hammond announces new nuclear weapon deals

Liam Fox, the former defence secretary warns in an article for the Telegraph that the EU initiative is a threat to Nato and a dangerous distraction from the need to reinforce Europes commitment to working with America, where the Trident missiles are made.

Mr Hammonds report on Trident is likely to cause dismay among Lib Dems who are opposed to a like for like replacement for Britain's continuous deterrent of nuclear-armed submarines.

However, funding for the developments so far has been signed off by Danny Alexander, the Lib Dem Treasury minister, despite his partys opposition. A further 2 billion is expected to be spent on the project before the next election.

A Ministry of Defence source said: This is further evidence of our commitment to deliver the next generation of Royal Navy Trident-armed nuclear submarines, maintaining the ultimate guarantee of our national security through continuous-at-sea deterrence."

A Tory source said the fact that Mr Alexander, the chief secretary to the Treasury, had agreed up to 3 billion of spending on Trident showed that the Liberal Democrats were in an awkward position on the policy.

A senior Lib Dem admitted a "difference of opinion" with the Tories but stressed that the final decision on whether to proceed with a full replacement for Trident would be taken after the 2015 election.

We dont believe, particularly in an era of tightened public finances, that spending billions of pounds on a nuclear missile system that was designed to flatten Moscow at the touch of a button is the best use of public money," the source said.

There are alternatives that maintain our deterrent but do so in a more cost effective manner.

Mr Hammonds report will make clear that preparations for the full replacement of Trident are advanced and gathering pace. Some 415 million has been spent in the last financial year alone, the report will show.

The Cabinet minister will announce a new 47 million contract has been signed between the government and BAE Systems Maritime-Submarines, based in Barrow-in-Furness, Cumbria. The deal will provide parts of the hull structure for the submarines as well as fittings and electrical equipment.

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Trident: Philip Hammond announces new nuclear weapon deals