Ministers admit the Type 31 programme needs a budget reset as Government watchdog gives it a red rating, but Labour will not say how much more it could cost or give a firm assurance that it will meet its May 2030 deadline
Labour ministers are under pressure to come clean over the cost and delivery of Britain’s new Type 31 frigates after admitting the programme is facing inflationary pressures, while declining to say when its budget will be reset or give a firm assurance that it will meet its scheduled completion date.
Thanks to the previous Conservative government, five Inspiration-class frigates are being built for the Royal Navy by Babcock at Rosyth, Scotland, as Britain replaces its ageing Type 23 fleet.
The ships will play an important role in maintaining Britain’s naval presence around the world, carrying out missions including maritime security, interception, intelligence gathering and defence engagement.
But new parliamentary answers published on Monday have left major questions hanging over both the final bill and the timetable.
Conservative MP Ben Obese-Jecty asked Minister for Defence Procurement Luke Pollard when the Ministry of Defence planned to reset the programme’s Approved Budgetary Limit following warnings about inflation.
Pollard confirmed that the programme was “experiencing inflationary pressures” and said the impact of possible costs was being assessed.
But he would not say when ministers expect to make a decision on the revised budget, saying it would be “inappropriate to speculate on the timing of any future decisions”.
That means taxpayers still do not know when the new spending ceiling will be agreed, or how much additional money could ultimately be required. And Labour was similarly reluctant to provide certainty over the timetable.
Mr Obese-Jecty separately asked whether the Government expected to deliver the Type 31 programme by its scheduled end date of May 31, 2030.
Rather than confirm that it would, Mr Pollard said schedule performance was kept under continual review and any changes to approved schedules would be reported through the appropriate official channels.
The failure to give a straightforward assurance comes after the Government’s own major projects watchdog gave the Type 31 programme a red Delivery Confidence Assessment for the second year running.
The National Infrastructure and Service Transformation Authority’s 2025/26 assessment said the rating remained red at the end of the financial year.
It specifically identified inflation as a problem, saying its impact would require the programme’s Approved Budgetary Limit to be reset following the Government’s Defence Investment Plan.
The watchdog also highlighted challenges with the first ship’s schedule and complex integration work.
Importantly, it said delivery of the Navy’s user requirements remained on track, meaning the red rating should not be interpreted as evidence that the five ships will not ultimately be delivered.
But it is nevertheless the most serious delivery confidence rating given to projects under the system and underlines the scale of the challenges facing the programme.
The Type 31 project was launched under the previous Conservative government, which awarded Babcock a £1.25billion contract in November 2019 to design and build five frigates, with an average production cost of £250million per ship.
There has been significant progress at Rosyth since then, with ships moving through different stages of construction.
However, the current administration are now responsible for overseeing the programme, approving its future budget, managing its delivery and explaining to Parliament how much taxpayers will ultimately be expected to spend.
That makes their inability to provide firm answers particularly significant. The Royal Navy needs the new ships as its ageing Type 23 frigates are progressively withdrawn from service.
The Type 31s are intended to operate alongside the more specialised Type 26 anti-submarine warfare frigates and provide Britain with a flexible general-purpose warship capable of deploying around the world.
The MOD has previously said HMS Venturer, the first Type 31, is scheduled to enter service by the end of the decade, with all five planned to be in service by the early 2030s.
At a time of growing international instability, delays to replacement warships are therefore far more than an accounting problem.
Britain needs a Royal Navy with enough operational ships to protect its interests, support its allies, secure vital sea lanes and maintain a credible military presence overseas.
There is also an important distinction between the original £1.25billion Babcock contract and the wider Type 31 programme.
The £1.25billion figure covers the contract to design and build the five frigates. The wider MOD programme involves additional expenditure, and NISTA has not published its total whole-life cost because the figure is commercially sensitive.
It is that wider approved budget which the Government’s watchdog says now needs to be reset for inflation.
That makes the unanswered question even more important.
What will Britain’s new frigates ultimately cost taxpayers? Labour ministers have now had the opportunity to provide clarity. Instead, when asked when the budget would be reset, they would not give a date.
When asked whether the programme would be delivered by May 31, 2030, they would not give an unequivocal yes.
Britain should be proud that sophisticated new warships are being built in a British shipyard and of the skilled workers building them.
A strong Royal Navy is not somewhere Britain should be looking to cut corners.
But supporting defence spending does not mean giving the Government a blank cheque – particularly when the programme responsible for delivering five ships desperately needed by the Navy is carrying a red delivery rating.
The questions for Labour are now simple.
How much more will the Type 31 programme cost? When will its revised budget finally be approved? Will it meet the May 2030 programme deadline? And when will all five ships actually be operational with the Royal Navy?
For a Government responsible for Britain’s defence, “under review” is not an answer that can satisfy taxpayers indefinitely.
