BAE sweetheart deal on aircraft carriers in peril

Ministers are trying to re-negotiate the £5.3bn contract with BAE Systems to build two aircraft carriers in an attempt to force it to take more responsibility for spiralling costs.

The Ministry of Defence and the Cabinet Office, which controls departmental spending, also want to change BAE’s lucrative deal that gives the defence giant a monopoly on military shipbuilding, sources said.

The carriers have soared in cost since a deal to build them was signed in 2008. At that time, they had an estimated price tag of £3.6bn, but that has since soared to almost £5.3bn.

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