Royal Navy, Army and RAF projects including Type 26 and 31 programmes could be overbudget and miss deadlines

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Major military projects including shipbuilding programmes could end up overbudget and not be completed on time.

Information around the status of Royal Navy, Army and RAF schemes was released in the Ministry of Defence’s (MoD) Major Projects Portfolio Data. Programmes have been graded on a traffic light system - red, amber, green and exempt.

Each colour determines - as of March 2024 when the grades were finalised - if the scheme is likely to be completed on time and to its allocated financial budget. Some programmes are classed as exempt for national security reasons.

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Type 26 and 31 shipbuilding programmes have been classed as amber in the MoD major projects data, which means they could end up overbudget and miss deadlines.Type 26 and 31 shipbuilding programmes have been classed as amber in the MoD major projects data, which means they could end up overbudget and miss deadlines.
Type 26 and 31 shipbuilding programmes have been classed as amber in the MoD major projects data, which means they could end up overbudget and miss deadlines. | John Linton/BAE Systems PLC

Out of 49 projects analysed, two are branded green, with 36 amber, eight red and three exempt. As previously reported in The News, The Infrastructure and Projects Authority’s Annual report on Major Projects for 2022-23 said a red grade means a programme has “major issues” over schedule, budgets and quality, and states a scheme’s successful delivery needs “re-scoping”.

Describing the amber category, the report said “successful delivery appears feasible but significant issues already exist, requiring management attention,” adding that these problems are considered “resolvable” if they are “addressed promptly”.

One of the major Royal Navy schemes classed as amber is the Type 26 shipbuilding programme. Eight City-class frigates, primarily focused on anti-submarine warfare as well as air defence and general purpose operations, are due to be built by the mid-2030s. The first, HMS Glasgow, is expected to enter service by 2028.

The Type 31 shipbuilding programme was also classed as amber. Five Inspiration-class General Purpose frigates, which are due to replace some of their Type 23 counterparts, are due to launch into the service fleet in the late 2020s. The steel for the third vessel, HMS Formidable, was cut during a ceremony in October.

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The Type 31 ships are due to enter service by the late 2020s, with all of the Type 26 ships due to be completed by the mid 2030s. Picture: Type 31 frigate HMS VenturerThe Type 31 ships are due to enter service by the late 2020s, with all of the Type 26 ships due to be completed by the mid 2030s. Picture: Type 31 frigate HMS Venturer
The Type 31 ships are due to enter service by the late 2020s, with all of the Type 26 ships due to be completed by the mid 2030s. Picture: Type 31 frigate HMS Venturer | Royal Navy

Other Royal Navy projects, including Multi-Role Support Ship (MRSS) programme and installing Sea Venom missiles for Wildcat helicopters, were also classed as amber. A Ministry of Defence (MoD) spokesperson said neither a comprehensive reflection of project performance nor a prediction of likely success or failure, merely a likelihood of success at a specific point.

They added: “We are progressing well with the production of Type 31 and Type 26 frigates. These ratings were taken in March 2024, under the previous government. We are getting a grip of MOD budgets, driving deep reform in defence and ensuring that we reduce the waste and delay in procurement contracts.

“Central to our Defence Industrial Strategy, we are clear that procurement needs to be faster and more agile, with increased emphasis on getting equipment into the hands of our Armed Forces to face down global threats.”

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