Brown reveals £3.9bn warship plan
3.44, Wed Jul 25 2007
Plans to build two aircraft carriers for the Royal Navy worth £3.9bn have been announced by the Government.
The aircraft carriers will be equipped with F-35 Joint Strike Fighter combat jets and should enter service in 2014 and 2016.
Prime Minister Gordon Brown said the UK would continue to co-operate with France on the design of the carriers.
He confirmed that BAE Systems and the VT Group would merge their shipbuilding assets.
Mr Brown also announced that the navy would retain all three of existing bases at Portsmouth, (where the carriers will be based) Devonport and Faslane, although with the loss of some jobs among the 17,800 employees across the three sites.
Overall, the MoD would be making annual 5 per cent savings in administrative costs over the three years of the settlement.
Mr Brown said that it would enable the forces to invest £550m in improving services accommodation, including the upgrade of 18,000 barrack-style bed spaces.
BAE chief executive Mike Turner welcomed the announcement that the Government was now ready to enter into the full manufacturing phase for the carriers.
He said: "This is a significant milestone for the UK maritime industrial sector and will help retain critical areas of expertise in the UK."