by Keith Richmond
THE watchdog which prides itself on “helping the nation spend wisely” has warned that renewing the controversial Trident nuclear missile system involves enormous risks.
The National Audit Office, which scrutinises public spending on behalf of Parliament, and is independent of government, is also concerned about the cost of the multi-billion pound project.
In a report on The UK’s Future Nuclear Deterrent Capability, published today, it describes the government’s timetable as “challenging, with very little room for delay, and the Ministry of Defenceneeds to manage key risks if continuous nuclear deterrence is to be maintained.”
The Government has put the cost “of procuring a new nuclear deterrent” at between £15 billion and £20 billion. But the NAO warns that the cost may increase, vulnerable as it is to the exchange rate – Britain is buying the missiles from the United States – as well as changes in design and, of course, inflation.
It says: “The MoD recognises the need by September 2009 to produce robust estimates of whole life costs. There are major areas of uncertainty in the budget, including the provision for contingency and VAT, which need to be resolved.”
The Government wants to deploy the new submarines in 2024 but they will take five years to design, eight years to build and need two years of trials, according to the NAO.
Tim Burr, who heads the NAO as Comptroller and Auditor General, said: “Critical decisions about the design of the future submarine class and the commercial strategy required to incentivise monopoly suppliers now need to be taken so that the Ministry of Defence can stick to its demanding schedule and assure value for money over the life of the programme.”
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