Notable Point · 17:00-18:51

Why six Type 45s carried the development cost of twelve

A Type 45 cost estimate separates ship construction from development and shows how completing twelve destroyers could have reduced the average programme cost per ship.

Notes

The Type 45 cost comparison assigns £2.7 billion of a £6 billion programme to building six ships and £3.3 billion to research and development. The average construction cost is therefore about £450 million per ship, while dividing the whole programme by six produces the familiar £1 billion figure. Estimated costs for another six fall to roughly £300 million each for the next three and £250 million each for the following three. On those assumptions, another £1.6 billion would have brought the fleet to twelve ships for about £7.6 billion in total, a little under £650 million per ship including development. Reducing the order left fewer hulls to carry development costs already incurred.