To ask the Secretary of State for Defence, with reference to page 60 of the Defence Equipment Plan 2019, published on 27 February 2020, what steps his Department has taken to reduce the cost of the P-8 contract from £2.392 billion to £2.203 billion.
12 May 2020
The approved cost for delivery of the P-8A Poseidon Maritime Patrol Aircraft project is £2.392 billion. However, at the point when the information for the Defence Equipment Plan 2019 was prepared, the forecast cost of the project was £2.203 billion. A robust project management regime is in place which enables the financial forecast to be revised and refined as the project progresses through its lifecycle and more detail becomes known, for example as actual costs replace expected ones.