Q&A · 2:02:34-2:04:10

What Ajax reveals about defence procurement failure

The Ajax budget question turns on unrecovered spending, replacement choices, and competing service requirements.

Question

Would the Ajax failure cause Army budget sacrifices that protect the Royal Navy and RAF?

Short answer

A simple transfer from the Army to the other services is not expected. Recovery or replacement costs compete with naval and air requirements, while the sunk spending cannot readily be recovered.

Notes

Clarke expects little of the money already spent on Ajax to be recovered and doubts that making the vehicle viable will be affordable. CV90 and wider use of Boxer are the alternatives he raises. A shift to wheeled vehicles would itself be a major decision for the Army. He does not expect the government simply to punish the service by transferring its budget elsewhere. The Navy and RAF would also resist losing money needed for their own programs. His broad cost comparison includes earlier failed armored-vehicle efforts, rather than a clearly defined Ajax contract total.