Royal Navy: Ships

Lord Lancaster of Kimbolton Excerpts

Wednesday 22nd June 2022 Lords Chamber

[Baroness Goldie (Con)]

The noble Lord manages to induce a bit of pessimism in me. These two ships are a very important addition to the fleet.

[Lord Lancaster of Kimbolton (Con)]

The original budget for the flagship was some £200 million. The Defence Secretary now says that it may be up to £250 million. With inflation running in the shipbuilding pipeline at some 8%, can my noble friend tell your Lordships’ House potentially what the upper limit for that budget would be, for the flagship to continue to offer value for money? Also, when was the last time that the Government or any Government delivered a warship for its original budget?

[Baroness Goldie (Con)]

I will take the last question first. My noble friend is aware that very strict procurement rules now govern MoD procurement, and that the budgets for the Type 26 and Type 31 are very vigilantly watched. On the possible price range for the national flagship I cannot be specific about figures but, to put these sums in perspective, over four years the projected cost amounts to an impact on the defence budget in the region of 0.1%.