Aircraft carrier project leaves defence budgets '˜exposed', MPs warn

Members of the public accounts committee (PAC) claim the cash-strapped Ministry of Defence could be left ‘exposed financially’ as it looks to deliver the carrier strike programme.

Fluctuations in the value of the pound, which plummeted against the US dollar after the 2016 Brexit vote but is beginning to recover, also risk adding ‘significant cost pressure’ as the Lightning II F-35s are being bought from American aerospace giant Lockheed Martin.

Today’s warning piles added pressure on Whitehall, which is already facing calls from ex-defence ministers, former military top brass and Tory backbenchers not to make cuts elsewhere in the armed forces.

Meg Hillier, PAC chairman, said: ‘There is a lot at stake with carrier strike – a hugely complex, costly programme intended to be at the heart of national defence for years to come.

‘The project continues to leave the MoD exposed financially. Government must bring carrier strike in on budget or risk jeopardising the funds available for other defence programmes.

‘Uncertainty over some costs and the potentially negative impact of foreign exchange rates mean this will be no easy task.

‘There are also questions over the Lightning II jets and the eventual deployment of carrier strike, which could threaten the programme’s value for money.

‘All this is taking place as the MoD awaits clarity on the future size of the defence budget. We will be keeping a close eye on this programme and will expect the department to keep us abreast of developments.’

The PAC also warned there must not be a gap between the retiring of Type 23 frigates, which defend the carriers against submarines, and new Type 26 ships entering service in 2027 because it would limit the use of the larger ships.

Defence officials said they are ‘committed’ to keeping costs under control on the Royal Navy’s £6.2bn aircraft carrier scheme.

Despite the concerns raised by the PAC today. the MoD insisted it had a grip on things.

A spokesman said: ‘Our new aircraft carriers will play a vital role in keeping Britain safe for the next 50 years.

‘This is a crucial investment that will revolutionise our ability to defend our nation as we face intensifying threats, and we are committed to keeping costs under control.’