Government payments for a huge manufacturing project in Merthyr Tydfil is set to finally resume after years of delays. The scheme to deliver nearly 600 new armoured vehicles for the British Army has been hit with a series of issues since launching 12 years ago, with soldiers being injured due to problems with the noise and vibration of the vehicles.
Payments towards Merthyr's General Dynamics, where 589 Ajax armoured vehicles are being assembled as part of the £5.5 billion project, were paused in December 2020. However, the troubled programme is now "turning a corner", with the Ministry of Defence confirming that payments will resume.
The vehicles, which were due to enter service in 2017, are set to transform the Army's armoured fleet and bolster its land-based reconnaissance capability. The Ajax features a suite of cutting-edge sensors, enhanced 40mm cannon, modular armour, and improved cross-country mobility, with the Army able to operate in all weathers, 24 hours a day.
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An initial payment of £480 million has now been made to General Dynamics, with the vehicles finally set to enter initial operating capability between July and December 2025. The payment will reach the UK-wide supply chain of more than 230 companies, supporting more than 4,000 jobs throughout the UK, including hundreds in south Wales.
In a written statement to MPs, defence procurement minister Alex Chalk said payments would resume with a payment of around half of what has been held back since 2020.
"Given the satisfactory progress against the programme, the department will resume payments this month, starting with a payment of £480 million," he said. "Restarting payments to General Dynamics reflects the fact that the programme continues to return to a firm footing and supports the delivery of the schedule to deliver operational capability."
He said further payments for 589 of the fighting vehicles will be made against a "new schedule and its milestones", adding: "The Ajax programme is turning a corner, but this does not remove the need for the department to identify and learn lessons."
Defence Secretary Ben Wallace, who oversaw ongoing vehicles trials last month, said: “Having worked closely with General Dynamics to address the issues, I am pleased to say that we are making progress and are now on course to see the delivery of a suite of hundreds of battle-ready vehicles for the British Army," he said.
Secretary of State for Wales, David TC Davies added: “I’m delighted to see the Ajax programme resuming. General Dynamics is a vital employer in south Wales providing a huge number of well-paid, highly skilled jobs to local people. Ajax vehicles are key to modernising HM Armed Forces and I’m proud that the workers at their Merthyr Tydfil factory are playing such an important role.”
Meanwhile, the Labour Party has accused the Government of "failing British taxpayers and British troops" over the delayed scheme, with shadow defence secretary John Healey saying: "The Conservatives are shelling out billions more of taxpayers' money on a project which is already six years late and won't fully deliver until the end of this decade.
"The Defence Secretary has made Ajax central to the future of the Army and the UK's ability to fulfil our NATO obligations, yet after 13 years and £4 billion investment the Army has still not got a single deployable vehicle. It is clear the Government can't deliver value for public money or the equipment our forces need to fight."
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