MoD projects cost £3bn extra

Britain’s top 25 defence equipment projects will cost over £3bn more than originally forecast and be on average three years late, according to the National Audit Office. The NAO said this week that the Ministry of Defence’s latest ‘Major Projects Report’ which reflects the position of the 25 largest projects on 31 March 1997 showed […]

Britain’s top 25 defence equipment projects will cost over £3bn more than originally forecast and be on average three years late, according to the National Audit Office.

The NAO said this week that the Ministry of Defence’s latest ‘Major Projects Report’ which reflects the position of the 25 largest projects on 31 March 1997 showed the most common reasons for the rise in costs were changes to a project and over-adjustments for the rate of inflation.

The largest cost rises were £1.489bn for Eurofighter, £760m for the navy’s Merlin helicopter and £369m for the RAF’s Tornado mid-life update to the new GR4 standard.

Of Eurofighter’s cost rise, £975m was due to various increases during development and another £225m because of the integration of new weapons and sensors not originally planned for the aircraft.