The suspension of the procurement process for the new Type 31e frigates is a huge blow to the shipbuilding industry and raises worrying questions about MOD procurement Prospect have warned.
The government announced on Tuesday afternoon that the process was being paused amid worries that no bids had managed to meet the asking price of £250m per ship.
Prospect had been calling for the procurement of the ships to be progressed as quickly as possible to ensure the steady drumbeat of orders needed to protect employment levels in the shipbuilding industry.
Prospect general secretary Mike Clancy said:
“This is a deeply concerning development for the UK shipbuilding industry and raises serious questions about this procurement process.
“The government must now act urgently to come forward with a price that enables them to procure a ship that meets the needs of the Royal Navy and provides certainty to the UK shipbuilding industry and high-skilled jobs that rely on it.”