UK workshare in FSS programme to rise on later ships

The Ministry of Defence, in a letter from Defence Minister Luke Pollard to Defence Committee chair Tan Dhesi MP, says UK labour hours in the Fleet Solid Support Ship (FSS) programme will increase under what Pollard describes as “this new approach,” following the decision to shift part of ship-1 fabrication to Spain to avoid schedule slippage after Harland and Wolff’s financial collapse.

In the detailed annex Pollard provided to the Committee, he states that “there are no contractual obligations for UK workshare,” noting that the contract agreed under the previous government was based on Navantia UK’s proposed build strategy, which was assessed as delivering “the best achievable social value benefits and UK content, balanced against cost, schedule and capability.”

Pollard highlights that the contract contains “a social value commitment,” requiring skills development, apprenticeships and investment across UK supply chains.

He confirms that recapitalisation of the Belfast yard is a contractual requirement, adding that “the totality of the civil engineering work… [is] delivered through UK suppliers” and expected to generate “long-term benefits to the local community… in terms of supply chains, employment and community engagement.”

On ship-1, Pollard’s annex explains that “it is necessary for more fabrication work to be done in Spain on ship 1,” due to the pause in Belfast recapitalisation during Harland and Wolff’s financial distress. He writes that the shift was made “to minimise the impact on ship 1 delivery dates,” with responsibility “shared between Navantia UK and the MOD.”

He also stresses that the change does not reduce domestic output overall. The annex states: “The reduction in UK work on ship 1 will be offset by increased UK work on ships 2 and 3, ensuring the overall UK workshare is maintained. In fact, on current estimates, UK labour hours are increased slightly in this new approach.” Pollard notes that Navantia UK has “further invested in an 85 metre barge… built in their Methil yard in Scotland.”

Pollard writes that recapitalisation at Belfast restarted in spring 2025 following Navantia UK’s acquisition of the H&W yards, and that production readiness will be demonstrated through “the manufacture of a test module in Belfast,” overseen jointly by the MOD and Navantia.

On costs, Pollard states that transferring some early work to Spain “does not result in additional costs and delivers the ships more quickly than would have been the case if this work had remained in Belfast.” He confirms that the Appledore workload, including bow sections for all three ships, “remains unchanged.”

Regarding industrial impact, Pollard’s annex says: “The overall workload and workforce for UK shipyards… is expected to be maintained or increased over the life of the programme,” pointing to continued apprentice recruitment at both Appledore and Belfast. He argues that Navantia UK’s takeover of H&W has “allowed a renewed commitment to suppliers.”

On oversight of Navantia’s restructuring decisions, Pollard writes: “As the Prime Contractor, it is the responsibility of Navantia UK to manage their suppliers… within a fixed/firm price to deliver the three FSS ships.” The contract includes “remedies, including those linked to delivery performance,” and he stresses that “any material changes to the build strategy require prior engagement.”

Pollard concludes that the programme continues to meet its strategic intent: “The FSS programme is great news for UK suppliers and shipbuilding and the Government is committed to delivering a thriving shipbuilding sector across the UK.”