Rishi Sunak has sunk plans by Boris Johnson’s administration to build a new royal yacht, sparking criticism about the £2.5m of taxpayers’ money already spent on the “vanity project”.
As Whitehall braced for cuts expected in Jeremy Hunt’s autumn statement next week, the project – intended to promote post-Brexit trade – was abandoned in favour of defence capabilities.
The scheme, championed by Johnson when he was prime minister, was likely to cost up to £250m, with additional annual running costs of up to £30m.
The defence secretary, Ben Wallace, who had previously supported the idea and described critics as “doomsters”, told the House of Commons it had been dropped on Monday.
He said Russia’s invasion of Ukraine and Vladimir Putin’s “reckless disregard of international arrangements designed to keep world order” meant it was more important to deliver “capabilities which safeguard our national infrastructure”.
Wallace confirmed he had “directed the termination of the national flagship competition with immediate effect”, in order to prioritise the procurement of a multi-role ocean surveillance ship (MRoss).
The MRoss would “protect sensitive defence infrastructure and civil infrastructure” and “improve our ability to detect threats to the seabed and cables”, he said.
Sunak’s spokesperson said the prime minister thought it was “right to prioritise at a time when difficult spending decisions need to be made”.
Labour welcomed the news that the government was scrapping Johnson’s “taxpayer-funded vanity project”.
John Healey, the shadow defence secretary, said: “At a time when threats to this country are growing, and the Conservatives’ economic mismanagement threatens future prosperity, this money would have been better spent on our nation’s defences.”
The vessel had been expected to be constructed in the UK and had been planned to take to the water in 2024 or 2025, touring the world as a “floating embassy”.
Harland & Wolff, a shipbuilding and marine engineering operator based in Belfast, said it was one of two finalists in the design procurement process.
John Wood, the firm’s chief executive, said the decision to scrap the scheme was “disappointing”, but added: “We understand the rationale for doing so, considering the current macroeconomic environment and the ongoing situation in Ukraine.”
He said the flagship would have “returned many multiples of her build cost to the UK economy over many decades, acting as an international demonstration of the creativity and engineering talent the UK has to offer”.
However, the Commons defence committee said in 2021 there was “no evidence of the advantage to the Royal Navy of acquiring the national flagship” and that the cost would pile extra pressure on the armed forces.
