Britain signs CV contract
July 1, 2008 by Dagpotter · 1 Comment
Filed under: Contract Awards, England, Scotland, VT Group, production program
Filed under: Contract Awards, England, Scotland, VT Group, production program
The British Ministry of Defense signed the contract with the VT Group to build the two new aircraft carriers for the Royal Navy. See an article here. Previous reports had the Scottish government worried that Britain might renege on the deal due to differences with the emerging nationalistic mood in Scotland. See a post here. The total contract value is about $7.5 B with as always with these kind of programs the chance to go higher.
Labor government cuts defence budget, English contractors feel pain
This analysis in The Guardian says that BAE and the VT Group will lose billions in orders from the British government if planned cuts to the defence budget go through. Because some of the contracts for hardware have cancellation clauses the government may be force to buy the systems and then sell them to other nations. This is all part of an attempt to reduce public spending.
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