Source · Select Committees · Scottish Affairs Committee
Recommendation 55
55
Acknowledged
During our inquiry the Prime Minister announced the decision that the second batch of Type...
Conclusion
During our inquiry the Prime Minister announced the decision that the second batch of Type 26 anti-submarine warfare frigates would be built by BAE in Glasgow.90 This means that, in addition to the three Type 26 ships already being built, five more vessels will be built on the Clyde. The MOD claims the contract will support 1,700 jobs in Govan and Scotstoun, and that as a result of the contract BAE will invest £1.2 billion in the UK supply chain, supporting a further 2,300 jobs. This investment includes the construction of a new covered shipbuilding hall at Govan, which will allow two frigates to be built simultaneously under cover. Prior to the announcement of the decision, Sir Simon Lister told us progress was already being made towards construction because of the Government’s strong commitment to Batch 2; he said the hall would be operational in two years’ time and described it as a “very important fillip for our workforce.”91 In addition to the work generated for BAE directly, the MOD says £248 million of work in the manufacturing supply chain will be in Scotland, compared with £749 million in England.92 Vice Admiral Paul Marshall gave two specific examples of parts of the ships that would be built by the Scottish supply chain: the stabilisers—to be built in Dunfermline—and the mission bay doors—to be built in Edinburgh.93
Government Response Summary
The government acknowledges the importance of the Type 26 frigates, but reports that the Initial Operating Capability date of the first ship will be a year later than anticipated with additional costs, but work is underway to increase productivity and improve efficiency.
Government Response
Acknowledged
HM Government
Acknowledged
The importance of maintaining the shipbuilding ‘drumbeat’ in respect of the Type 26 frigates is fully appreciated and it was for this reason that the contract for the second batch of Type 26 ships was awarded well before construction of the first batch has completed. As confirmed by the Secretary of State for Defence in a Written Ministerial Statement on 2 November 2022 it is regrettably the case that, for a number of complex reasons including global challenges, the Initial Operating Capability date of the first Type 26, HMS Glasgow, will be a year later than anticipated and that this delay carries with it an additional cost. Work is already underway to increase productivity and improve on the revised forecast Initial Operating Capability date. In addition, an investment in a new Shipbuilding Hall to build ships undercover and to further improve build efficiency is in progress. BAE Systems are also working closely with DE&S and the Royal Navy to streamline the trials, testing and acceptance into service plans.