THE new Conservative-led coalition government has stated its commitment to "the maintenance of Britain's nuclear deterrent".

During the election, the Liberal Democrats had ruled out a "like-for-like replacement" of the submarine-based missile system, which they argued could cost up to £100billion.

Lib Dem leader Nick Clegg said Labour and the Conservatives were locked in a "Cold War time warp" over the issue and argued the future of the nuclear deterrent should be decided as part of the strategic defence review.

As part of the power-sharing agreement, the parties agreed that the renewal of Trident should be "scrutinised to ensure value for money" and that Liberal Democrats will "continue to make the case for alternatives".

The replacement of the Royal Navy's ageing fleet of Vanguard submarines has far-reaching implications for thousands of jobs in Plymouth.

Devonport is the UK's only base with the specialist facilities and skilled workforce needed to maintain the current and future submarine fleet, and so any scaling back of the system would have consequences.

As well as Trident, there is likely to be heated debate within the Tory-Lib Dem coalition about other expensive defence equipment projects, including the two new aircraft carriers.

The carrier contract is set to bring vital work to Devonport, with its owner Babcock International part of the alliance to build and assemble the ships.

The coalition is the first time the Conservatives and Liberal Democrats have had a power-sharing deal at Westminster and the first coalition in the UK since the Second World War.

The agreement between the two parties also includes a "significant acceleration" of efforts to reduce the budget deficit — including £6billion of spending reductions this year.

The Lib Dems have agreed to drop plans for a "mansion tax" on properties costing more than £2million, while the Conservatives have agreed to shelve their plans to raise the inheritance tax threshold.

Instead there will be a "substantial increase" in the personal tax allowance from April 2011, with further steps to raise it to £10,000 as a "longer term objective".

There will be a referendum on moving to the Alternative Vote system and enhanced "pupil premium" for deprived children.

Tory MP for South West Devon Gary Streeter said: "My philosophy has always been country before party. The more stable the coalition is, the better.

"We can now start to address the huge debt and deficit problems which are blight on the economic recovery."

Labour MP for Plymouth Moor View Alison Seabeck branded it "a Con-Dem'ed coalition".

Highlighting Lib Dem opt outs on controversial issues like nuclear power, she said: "It doesn't strike me as much of an alliance."