Royal Navy: "Significant issues" means key defence projects could end up overbudget, says government report

By Freddie Webb

Published 15th Aug 2023, 13:14 BST

Updated 15th Aug 2023, 13:22 BST

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Many of the Royal Navy’s major projects could end up overbudget and miss deadlines, according to a government report.

The Infrastructure and Projects Authority’s Annual report on Major Projects for 2022-23, released in July, casts doubt over whether the force’s biggest schemes can be delivered to required specifications. Programmes are graded on a traffic light system – green, amber, red and exempt – after being assessed.

The Ministry of Defence (MoD) carries out 52 of the 244 listed ventures – accounting for £255.4bn, Of the projects which are classed as having military capability, four are red, 36 are amber, two are green and three are exempt.

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Pictured: Future Type 31 Frigate HMS Venturer currently in build at Rosyth Dockyard in Scotland. The Type 31 programme has been graded an amber in a recent government report. The project is likely to be completed on time and to budget, though some issues remain. Picture: LPhot Bill Spurr/Royal Navy.

Pictured: Future Type 31 Frigate HMS Venturer currently in build at Rosyth Dockyard in Scotland. The Type 31 programme has been graded an amber in a recent government report. The project is likely to be completed on time and to budget, though some issues remain. Picture: LPhot Bill Spurr/Royal Navy.

The report’s definition of an amber grade is: “Successful delivery appears feasible but significant issues already exist, requiring management attention. These appear resolvable at this stage and, if addressed promptly, should not present a cost/schedule overrun.”

A red grade states a project has “major issues” over schedule, budgets and quality, and states a scheme’s successful delivery needs “re-scoping”. Most of the Royal Navy’s major projects have an amber grade, including the Type 31e programme which involves the construction of five new advanced warships to replace the ageing Type 23 frigates.

This means the programme is likely to be completed on time and to budget if specific issues are addressed. A row between the MoD and shipbuilders Babcock had developed over who should pay for parts of the project, but this is not expected to interfere with any deadlines.

Other projects with an amber rating include the Type 26 Global Combat Ship Programme, which oversees the procurement of eight anti submarine warfare ships, the Submarine Dismantling Project and the Astute Boats 1-7 programme.

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Some ventures with a red grade include F-35B Lightning programme, involving aircraft which works alongside Royal Navy fleets, and Core Production Capability – which delivers safe nuclear reactor cores for the force’s submarine programme.

A Royal Navy spokeswoman said any issues raised about their projects will be resolved. She added: “This year’s report shows clear progress in the delivery of key programmes, including Fleet Solid Support ships, Royal Navy missiles and Ajax armoured vehicles.

“The majority of our programmes are rated Amber, meaning successful delivery is feasible, against mitigated risks that are regularly reviewed to support successful delivery. We continue to improve our management of major projects."