Rayleigh and Wickford’s Conservative MP, Mark Francois, recently questioned the Secretary of State for Defence about the current estimated cost of building the five new Type 31 class frigates.

In his query, he asked whether costs have increased since the contract was signed and requested a statement on the matter.

In response, James Cartlidge, the Minister of State at the Ministry of Defence, confirmed that the overall price of the contract had indeed risen. He stated, “…the Ministry of Defence has agreed with Babcock an increase in the overall price of the contract of some £40 million as a result of the impact of COVID and supply chain volatility.”

The Minister of State went on to explain that this £40 million increase amounts to only approximately 3% of the production cost of the ships.

Despite the rise in costs, he assured that the average production cost remains at £250 million per ship.

The Type 31 manufacturing contract was initially signed in November 2019, and the cost increase has been attributed to the challenges posed by the COVID-19 pandemic and its effects on global supply chains.

Lisa West
Lisa has a degree in Media & Communication from Glasgow Caledonian University and works with industry news, sifting through press releases in addition to moderating website comments.

39 COMMENTS

    • Agreed. Assuming these ships prove to be a success I can see orders for further batches rolling off the production line.

    • Every official graphic I have seen released including the one that heads up this article shows them with 12 , don’t know where this 24 thing came from , my guess is well intentioned but wishful thinking by someone posting on here . Never seen it mentioned elsewhere but hope of course I’m wrong.

    • I wouldn’t worry about that right now. We just need to get the ships in service. In the future they have lots of space for weapons. Danish vessels have 32 mark 41, 24 mark 56 and 16 harpoon. Polish have 32 mark 41 and 16 ASHM. There’s lots of space.

      • Here here to that – the reason why I always favoured Arrowhead 140 over the BAE Leander design, big hull, lots and lots of space .

    • Just after paying £40M you’d think they could afford to do 24! 12 is just ridiculous for the size of this ship.

      • Agree in full – I’m a fan of T31 – A140 but like most RN ships it’s pathetically under-arned

    • The Mushroom Farm will be replaced with a 32 cell Mk41 VLS with quad packed Sea Ceptors and other nasty toys.

      • I agree I think a review of the weapons/Sensors fit is in order. 12 missiles pre Ukraine would have gotten you laughed at, post Ukraine really needs least 32 Camms, a mix of Camm & Camm-ER would be nice (45/50km standoff range).

        Additional Surface and anti ship weapons should be looked at. Increase price tag to £300/£325M per ship and non of that FFBTW 🙄 Buy cheap usually means buying twice.

  1. Am I missing something here ? They announce it is £40m extra costs incurred in the BMT build which sounds very reasonable and makes no senses at it is only part of the price of the completed ships.
    I’d love to ask a follow up question “what increase has there been in the UK Government supplied equipment such as Weapons, Radar etc etc, which are in sperate supply contracts ?”

    • Agree, it is chicken feed regards some of the cost overruns.

      The problem with many of these questions is that the MPs asking are either so clueless on defence matters generally ( most of the Commons ) or phrase them so poorly the reply can be equally vague.

      I ended up sending so many FOIA they stopped replying to me….😆

    • I might have misunderstood, but I assumed is this a capped limit the MOD and Babcock are arguing over. Only two weeks ago Babcock were talking about absorbing a figure closer to £100m, and I haven’t read anywhere the dispute has been settled. Perhaps the agreed rise in the cost to HMG is £40m for all five ships, and the MOD’s position is that anything else is down to Babcock, not a rise in the cost as they see it. After all, if you ask a minister you’ll get the government’s position.

  2. Ok phew this is a relief. Just sign in blood that there will be NO further cost rises and move on. £40 million additional cost over 5 frigates is nothing.
    Get the ships built and move onto type 32 construction which surely has to be a follow on order of the same hull form with a different equipment fit.

    • The Hull form of a Type-32 would need to be different, if it’s role is to launch LXUUV’s, with a deep stern or even a well deck?

  3. £250M per ship was always a political estimate.Dead simple,we pay over the odds for our kit.Always have done,regardless of what it is…Type 26 frigate,sir?..Just under a billion sir!!..Suits you sir!!Just the eight then sir?…And 5 set of missiles to share between them??..Lovely!!

  4. Pile of pants be sunk in half an hour the lot of em.
    By cheap buy twice .
    Look at the type 22 got found out in a shooting war another cheapo cut price design.
    All look good on paper.

  5. Project management for the tax payers, needs to be sharp. Not like those for the HMS Queen Elizabeth and Prince of Wales. POW is in bits at this moment.

  6. In business/ real world you don’t accept cost overruns unless you have added spec. £40m should be covered by supplier, plus MoD should confirm no staff are going to “retire” to Babcock.

  7. Contract conditions might have changed since I left DE&S in 2005, but inflation is catered for in the contract so the £40M is probably a real cost increase to the original cost.

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