The UK will scrap five warships, dozens of military helicopters and a fleet of drones to save money despite growing threats from Russia and a war raging in Europe.
John Healey, the defence secretary, announced the dramatic move in parliament on Wednesday, saying it would save up to half a billion pounds over the next five years.
The defence secretary described the equipment being axed as “outdated” and said the “common sense” decision to retire them was long overdue.
He signalled the decision was part of a plan to restructure and modernise the armed forces, which have already been significantly reduced in size following decades of cost-saving cuts, with new capabilities due to come online to replace the gaps.
“We face increasing global threats,” Mr Healey said in a written statement that was released at the same time as he addressed MPs.
“War in Europe, growing Russian aggression, conflict in the Middle East and technology changing the nature of warfare. As a result, defence needs increased resilience and readiness for the future.”
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At the same time, though, he said the defence budget faced “serious financial pressures”.
Image: Defence Secretary John Healey speaking in parliament on Wednesday
He repeated a pledge that the government would set out a course to lift the defence budget to 2.5% of national income – but yet again without giving a date.
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The defence secretary then spelt out what “difficult decisions” meant in reality.
“To ensure that Britain is kept secure at home and strong abroad in a changing world, defence needs to make changes too. Difficult decisions are required,” he said.
The weapons systems on the chopping block are:
• The Royal Navy’s two amphibious assault ships, HMS Albion and HMS Bulwark. They will be taken out of service at the end of the year – around a decade early in a blow to the ability of the Royal Marines to launch land assaults from the sea. • A fleet of 17 Royal Air Force Puma helicopters, as well as 14 of the military’s oldest Chinook helicopters • A fleet of 47 Watchkeeper drones – each worth about £5m – barely six years since they entered into service • HMS Northumberland, a Type 23 frigate, which is in need of costly repairs and has already operated well beyond an 18-year out-of-service date • Two large Royal Fleet Auxiliary ships, RFA Wave Knight and RFA Wave Ruler – vessels which carry fuel and supplies to enable the Royal Navy’s aircraft carriers to operate around the world.
Image: HMS Albion is due for the chopping block. File pic: Reuters
Image: HMS Bulwark. Pic: PA
The announcement, while uncomfortable, is designed to be the least damaging way to reduce costs while retaining capability.
It comes ahead of a plan by the government to publish a sweeping new review of defence in the spring, which is being drawn up by an external team and is expected to recommend extensive changes across the army, Royal Navy and Royal Air Force.
The Ministry of Defence says that the equipment that is being axed – the term used is “accelerated retirement” – was selected because it is outdated and military chiefs need to focus finite money and personnel instead on the weapons systems most suited to modern warfare.
However, Russia’s war in Ukraine has demonstrated that old, outdated weapons are better than no weapons at all.
The Russian armed forces have relied heavily on old tanks, artillery guns and helicopters to fight after the weapons they used in the first weeks and months of the war were destroyed.
It takes years to build warships and helicopters.
Sir Keir Starmer will face uncomfortable challenges at the sight of amphibious assault vessels and Chinook transport helicopters being sold off or scrapped regardless of how old they are.
Yet it costs money to keep equipment in storage just in case it is needed.
Limited funds allocated to defence mean that military chiefs appear to have decided that scrapping weapons early is the least worst option.
The decision to scrap the British Army’s Mark 1 version of the Watchkeeper drone at a time when drones are such a dominant asset on the battlefield may also be tricky to defend.
Image: A Watchkeeper drone on display in France in 2012. File pic: AP
However, the programme has been beset by delays, cost overruns and flaws.
The first Watchkeeper drones only started operating around 2018 – some eight years late.
They also struggle to operate in poor weather conditions – limiting their utility.
The rapid pace of evolving technology in drone warfare – where the development cycle is a mere six to eight weeks – means that the technology inside Watchkeeper, which was conceived of more than 14 years ago, may well be easily defeated in a fight.
It is understood that scrapping the aircraft means that the army will be able to focus money on developing new innovative drone capabilities.
Gaza and transatlantic trade are set to dominate talks between Donald Trump and Sir Keir Starmer when the pair meet in Scotland on Monday.
Downing Street said the prime minister would discuss “what more can be done to secure the ceasefire [in the Middle East] urgently”, during the meeting at the president’s Turnberry golf course in Ayrshire.
Talks in Qatar over a ceasefire ended on Thursday after the US and Israel withdrew their negotiating teams.
Mr Trump blamed Hamas for the collapse of negotiations as he left the US for Scotland, saying the militant group “didn’t want to make a deal… they want to die”.
Sir Keir has tried to forge close personal ties with the president, frequently praising his actions on the world stage despite clear foreign policy differences between the US and UK.
The two leaders are expected to discuss this agreement when they meet, with the prime minister likely to press the president for a lowering of outstanding tariffs on imports such as steel.
Prior to the visit, the White House said the talks would allow them to “refine the historic US-UK trade deal”.
Extracting promises from the president on the Middle East may be harder though.
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Despite some reports that Mr Trump is growing frustrated with Israel, there is a clear difference in tone between the US and its Western allies.
As he did over the Ukraine war, Sir Keir will have to walk a diplomatic line between the UK’s European allies and the White House.
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The UK, French and German leaders spoke over the weekend and agreed to work together on the “next phase” in Gaza that would see transitional governance and security arrangements put in place, alongside the large-scale delivery of aid.
Under pressure from members of his own party and cabinet to follow France and signal formal recognition of Palestine, Sir Keir has gradually become more critical of Israel in recent months.
On Friday, the prime minister said “the starvation and denial of humanitarian aid to the Palestinian people, the increasing violence from extremist settler groups, and Israel’s disproportionate military escalation in Gaza are all indefensible”.
Government sources say UK recognition is a matter of “when, not if”, however, it’s thought Downing Street wants to ensure any announcement is made at a time when it can have the greatest diplomatic impact.
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Cabinet ministers will be convened in the coming days, during the summer recess, to discuss the situation in Gaza.
The UK has also been working with Jordan to air drop supplies, after Israel said it would allow foreign countries to provide aid to the territory.
Downing Street says Ukraine will also likely be discussed in the meeting with both men reflecting on what can be done to force Russia back to the negotiating table.
After the meeting at Turnberry, the prime minister will travel with the president to Aberdeen for a private engagement.
Mr Trump is also expected to meet Scottish First Minister John Swinney while in the country.
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“A wave of new cafes, bars, music venues and outdoor dining” could come to the UK – as the government unveils plans to overhaul planning rules and “breathe new life into the high street”.
Under the proposals, ministers also want to reform licensing rules to make it easier for disused shops to be converted into hospitality venues.
In a statement, Chancellor Rachel Reeves said she planned to scrap “clunky, outdated rules… to protect pavement pints, al fresco dining and street parties”.
The reforms also aim to prevent existing pubs, clubs, and music venues from suffering noise complaints when new properties hit the market.
Developers who decide to build near those sites will be required to soundproof their buildings.
Image: Reuters file pic
As part of dedicated “hospitality zones”, permission for al fresco dining, street parties and extended opening hours will be fast-tracked.
The government says the reforms aim to modernise outdated planning and licensing rules as part of its Plan for Change, to help small businesses and improve local communities.
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The rough plans will be subject to a “call for evidence” which could further shape policy.
Business Secretary Jonathan Reynolds said the proposals will “put the buzz back into our town centres”.
“Red tape has stood in the way of people’s business ideas for too long. Today we’re slashing those barriers to giving small business owners the freedom to flourish,” he said.
The hospitality industry has broadly welcomed the changes but argued tax reform was also essential.
Kate Nicholls, chairwoman of UKHospitality, described the proposals as “positive and encouraging”.
However, she added: “They can’t on their own offset the immediate and mounting cost pressures facing hospitality businesses which threaten to tax out of existence the businesses and jobs that today’s announcement seeks to support.”
While supporting the reforms, Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), had a similar message.
“These changes must go hand in hand with meaningful business rates reform, mitigating staggering employment costs, and a cut in beer duty so that pubs can thrive at the heart of the community,” she said.
In July, BBPA estimated that 378 pubs will shut this year across England, Wales and Scotland, compared with 350 closures in 2024, which it said would amount to more than 5,600 direct job losses.
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Bar chain Brewdog announced this week that it would close 10 sites, partly blaming “rising costs, increased regulation, and economic pressures”.
Andrew Griffith MP, shadow business secretary, said: “Though any cutting of red tape for hospitality businesses is welcome, this is pure hypocrisy and inconsistency from Labour.”
He said the government was “crippling the hospitality industry by doubling business rates, imposing a jobs tax and a full-on strangulation of employment red tape”.