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| Decision due on aircraft carriers | Decision due on aircraft carriers |
| (about 3 hours later) | |
| Defence Secretary John Hutton is due to issue a written ministerial statement on the future of two new Royal Navy aircraft carriers. | Defence Secretary John Hutton is due to issue a written ministerial statement on the future of two new Royal Navy aircraft carriers. |
| Reports suggest he could delay their entry into service - scheduled for 2014 and 2016 - by two years as the Ministry of Defence tries to cut costs. | Reports suggest he could delay their entry into service - scheduled for 2014 and 2016 - by two years as the Ministry of Defence tries to cut costs. |
| Work on the £4bn project had been due to begin next spring. | Work on the £4bn project had been due to begin next spring. |
| The announcement affects shipyards in Appledore, in north Devon, Portsmouth, Barrow-in-Furness, Glasgow and Rosyth. | |
| Former defence secretary Des Browne had given the green light for the creation of HMS Queen Elizabeth and HMS Prince of Wales in May. | Former defence secretary Des Browne had given the green light for the creation of HMS Queen Elizabeth and HMS Prince of Wales in May. |
| Contracts worth about £3.2bn were signed in July and the work was expected to create or underpin a total of 10,000 jobs at the yards. | Contracts worth about £3.2bn were signed in July and the work was expected to create or underpin a total of 10,000 jobs at the yards. |
| But Mr Hutton told MPs this week there would be a new announcement on defence spending. | But Mr Hutton told MPs this week there would be a new announcement on defence spending. |
| He said: "We will be setting out some ways in which we intend to improve value for money in relation to defence procurement. | He said: "We will be setting out some ways in which we intend to improve value for money in relation to defence procurement. |
| "But we have got to make sure that the armed forces have a balanced range of kit available to them." | "But we have got to make sure that the armed forces have a balanced range of kit available to them." |
| 'Financial chaos' | 'Financial chaos' |
| BBC defence correspondent Caroline Wyatt said the government did not view cancelling major defence projects as an option. Instead, it was considering delays as a way of controlling the Ministry of Defence's (MoD) spiralling budget. | BBC defence correspondent Caroline Wyatt said the government did not view cancelling major defence projects as an option. Instead, it was considering delays as a way of controlling the Ministry of Defence's (MoD) spiralling budget. |
| She said: "At least one of Britain's two new aircraft carriers could be put back by a year, or even two. | She said: "At least one of Britain's two new aircraft carriers could be put back by a year, or even two. |
| "There's already a delay to the joint strike fighter that will fly from the warships, so the MoD could argue it makes sense to put off the completion of the carriers." | "There's already a delay to the joint strike fighter that will fly from the warships, so the MoD could argue it makes sense to put off the completion of the carriers." |
| But Liberal Democrat MP Mike Hancock, a member of the Commons Defence Committee, said the MoD was in financial "chaos". | But Liberal Democrat MP Mike Hancock, a member of the Commons Defence Committee, said the MoD was in financial "chaos". |
| "Without the carrier contracts, many of those yards are going to find it difficult to keep going," he said. | "Without the carrier contracts, many of those yards are going to find it difficult to keep going," he said. |
| "MoD contracts have been fundamental in keeping the skills together, keeping the technology alive and moving it on... delays will undoubtedly mean a lot of that good work and a lot of money will have been wasted." | "MoD contracts have been fundamental in keeping the skills together, keeping the technology alive and moving it on... delays will undoubtedly mean a lot of that good work and a lot of money will have been wasted." |
| Meanwhile, hundreds of jobs in Somerset are to be secured due to a new government order for 62 Future Lynx helicopters from Agusta Westland, BBC West has learned. | Meanwhile, hundreds of jobs in Somerset are to be secured due to a new government order for 62 Future Lynx helicopters from Agusta Westland, BBC West has learned. |
| Mr Hutton is expected to confirm the order for the Yeovil production site later. | Mr Hutton is expected to confirm the order for the Yeovil production site later. |
| An immediate contract will also be awarded to upgrade existing Lynx helicopters to prepare them for battlefield sites such as Afghanistan. | An immediate contract will also be awarded to upgrade existing Lynx helicopters to prepare them for battlefield sites such as Afghanistan. |
| The order, worth £1bn, has been delayed for more than two years. | The order, worth £1bn, has been delayed for more than two years. |