Notable Point · 13:08-13:46

Type 45 cancellations and misleading unit cost

Cutting the Type 45 program from twelve destroyers to six loaded research costs onto fewer hulls and inflated the apparent price per ship.

Notes

Research and development for the Type 45 was funded for a planned class of twelve destroyers. Building six spread that bill across half the intended hulls, producing the headline figure of a billion pounds per destroyer even though the cost of building each ship was lower. The next six are estimated here at probably £2.4 billion. On that assumption, twelve ships would have cost £8.4 billion, averaging £700 million each. These hypothetical figures distinguish a programme's average cost from the cost of adding ships after development has been funded.