Penny-pinching penpushers refused £11.5bn deal to save £225m.. delaying vital Navy frigates ‘by years’
Leaked emails reveal arms giant BAE Systems offered to build combat ships on time with a saving of £275m but MoD refused
DEFENCE misers have gone back on an £11.5billion deal for a fleet of warships as they want to save another £225million.
The stand-off could delay delivery of replacement ships “by years”.
MoD chiefs had agreed for BAE Systems to build the Type 26 global combat ships with work due to begin in December. But they later asked for savings of £500million over five years.
Leaked emails reveal BAE offered to reduce the costs by £275million and promised to still start work on time.
But the MoD flatly refused the deal and demanded the full £500million saving, putting the project back at least a year while contracts are renegotiated.
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One email said: “We lost all these jobs, delayed ships and added far more cost all for the final £225million of forced savings.
“Shocking waste of tax payers’ money.”
The Royal Navy’s 13 Type 23 frigates are beginning to show their age, with the first due to be retired in 2023.
The emails add: “There are absolutely no benefits in any delay. The design was progressing to time until money was turned off. The Navy will get their ships even later and costing more. Same old, same old.”
Former First Sea Lord Admiral Lord West said: “The delay will cost us more than the savings. The Navy and our defence industry will lose out.”
The Government said it remained “committed to the Type 26 programme”.