The £70m farce that exposes rot at the heart of the Royal Navy

Britain spent £72m of taxpayers’ money refurbishing a Royal Navy warship before selling it to Brazil at a knockdown price.

Labour axed HMS Bulwark in November last year, in the middle of a major upgrade programme, alongside sister ship HMS Albion.

While the fate of Albion is unclear, Bulwark has been sold to Brazil, reportedly for about £20m in a fire sale, and is expected to head to the South American country next year.

Critics branded the deal “a spectacular failure” that would leave taxpayers “absolutely outraged”, and suggested it was a sign of more widespread failings in Britain’s military spending plans.

Sir Keir Starmer has pledged to increase defence spending from 2.3 per cent of GDP to 2.6 per cent by 2027 as part of a race to rearm ahead of possible conflict with Russia.

Looser pledges have also been made to hit 3 per cent in the early 2030s and 3.5 per cent by 2035.

However, the Telegraph revealed in October that the Ministry of Defence needed to find more than £2bn of cuts this year to avoid blowing its budget.

The scrapping of Bulwark and Albion left the Navy with a gaping black hole in its ability to carry out amphibious operations, from which it is struggling to recover.

Vessels from the Royal Fleet Auxiliary, the support arm of the Navy, were meant to step up to cover the loss. However, much of the “decrepit” fleet has been stuck in port because of the state of the vessels and a lack of available crew, severely limiting Britain’s ability to fight a war.

At the same time, Britain’s fleet of six Astute-class hunter-killer nuclear submarines have been largely out of action, with HMS Ambush having spent 1,222 days – more than three years – in port, according to defence analysts.

The backbone of Britain’s fleet – Type 23 frigates – are well past their shelf life, with many more than two decades old. Earlier this month, the Navy decommissioned HMS Lancaster in the Gulf, leaving the UK without any major warship in the Middle East.

The state of the fleet sparked an intervention from Gen Sir Gwyn Jenkins, the head of the Navy, who last week warned that Britain was struggling to cope with the increase of Russian warships and could lose control of the Atlantic if more investment was not made.

“We are holding on, but not by much,” he said. “There is no room for complacency. Our would-be opponents are investing billions. We have to step up or we will lose that advantage, and we cannot let that happen.”

Bulwark will join the former HMS Ocean, a British helicopter carrier which was sold to Brazil in 2018 for £84m after 20 years’ service. The work to prepare it for its new role is thought to have included a major overhaul of some of the ship’s systems, internal upgrades and repairs to the hull.

It was reported last year that Bulwark had spent more than 2,730 days in port over the previous seven years. At the time it was feared the ship would never return to active service because there were not enough sailors to man her.

Authorities in Brazil have insisted the addition of Bulwark will bolster its coastal security, with the ship primarily carrying out combat and disaster relief missions.

Brazilian defence sources said the 577ft-long helicopter landing ship, which will be renamed NDM Oiapoque, could also play a role in the war against drug cartels.

Gangs have increasingly been trafficking cocaine to Europe in disease-ridden cattle barges, where dead and dying cows are used to mask the illicit cargo. While police are leading efforts to combat this, naval sources have suggest Bulwark could also be used to intercept and escort vessels back to port.

Explaining the potential role, a Brazilian defence source told The Telegraph: “The Brazilian navy, like the other branches of the armed forces, does not have police powers. That is why, every time, we need to operate together with the police or another public authority to arrest someone or seize something.

“Outside of that, we act only in maritime protection. And if we come across any illegal activity at sea, as has happened several times, we have to call the police. We escort the vessel to the coast and notify the Federal Police. So yes, we can operate – but always jointly with other agencies, other security bodies.”

Navy sources disputed the £20m figure but declined to say what the actual sale price was, citing “commercial sensitivities”. “It’s significantly higher. Selling it for £20m would be giving it away,” the insider said.

As a Landing Platform Dock, Bulwark is designed for large-scale amphibious operations, not routine drug patrols like the smaller patrol vessels.

In 2015, she hit the headlines after helping to rescue more than 2,700 migrants who were being trafficked from north Africa across the Mediterranean.

She was scrapped alongside Albion in a move that sparked outrage from the Conservatives, who accused Sir Keir of wasting millions of pounds.

James Cartlidge, the Conservative shadow defence secretary, said: “We were told this was to save money – yet we now learn Bulwark was sold at a significant loss and Albion is costing taxpayers £2m annually just to keep it mothballed.

“It is no wonder there is a £2.6bn black hole in the MoD finances this year and that the Defence Investment Plan, promised for the autumn, still hasn’t been delivered.”

Callum McGoldrick, the investigations campaign manager at the TaxPayers’ Alliance, said: “Taxpayers will be absolutely outraged that the Ministry of Defence has poured £70m into a ship only to sell it off for a fraction of that price.

“Sinking a fortune into a refit just before a fire sale is the definition of false economy and a spectacular failure of financial discipline. With the tax burden at record highs, MoD bosses need to explain why they are burning through public cash to upgrade vessels they have no intention of keeping.”

A Royal Navy spokesman said: “Neither HMS Albion nor HMS Bulwark were due to go to sea ahead of their out-of-service dates in 2033 and 2034, and their sale will save £9 million a year in maintenance costs. Their disposal shows that we are delivering for defence, as well as value for taxpayer money, by retiring ageing capabilities to make way for the future.

“We do not provide ship sale figures for commercial reasons, and no final decision has been made regarding the sale of HMS Albion.”

[Source: Daily Telegraph]