Scrapping a multi-billion shipbuilding order would be “catastrophic” for Fife and put thousands of Scottish jobs at risk, the SNP has warned.
A £2.5 billion plan to build five new Type 32 frigates at the Rosyth shipyard was announced in 2020 by then-Prime Minister Boris Johnson in a bid to make Britain “the foremost naval power in Europe”.
The project was to employ more than 1,200 staff and retain thousands of other jobs.
Work was supposed to begin in 2028 but just two years after the order was confirmed, the Sunday Times reports Chancellor Jeremy Hunt plans to divert funding elsewhere.
How could it impact Scottish industry?
According to reports, the order could be dropped in this spring’s defence review but the Ministry of Defence has refused to confirm or deny details leaked by an insider.
The impact on Scotland’s shipbuilding industry could be compounded by the winding down of work on other frigates at Rosyth and Clyde in the second half of this decade.
It has led to fears that the sector could be hit with widespread job losses if the plans do not go ahead.
SNP defence spokesman Dave Doogan insisted any such decision would be a “gross betrayal”.
He said: “The Ministry of Defence habitually vires money from one budget allocation to shore up another more immediate overspend, only to subsequently reflate the donor budget at a later date.
“It’s a dysfunctional way of accounting but they seem wedded to it.
“I very much hope that is what the Admiralty are doing with Type 32 because cancelling this work would be catastrophic in operational terms for the Royal Navy and in industrial strategy terms for Rosyth, the wider supply chain and shipbuilding in general.
“If the prime minister cancels Type 32 it would represent a gross betrayal of Scotland and of industry partners, principally Babcock, who have invested so much private capital in Rosyth and are right now delivering the extraordinary Type 31 frigate together with unprecedented value for money to the taxpayer.”
What does the Royal Navy say?
A Royal Navy spokesperson said: “The Type 32 is planned after the Type 31 at the end of the decade.
“Its design and capabilities will depend on what the navy’s needs are at the middle of the decade and the number of ships will depend on whether Type 31 and Type 26 remains within budget.
“The strategic and long term investments continue to be on track and will increase the capability and size of the fleet.”