Defence secretary Michael Fallon was adamant as recently as November last year that the Type 26 Global Combat frigates would be built by BAE Systems on the Clyde. Fallon was forced to confirm that the boats would be built in Scotland after Sir George Zambellas, head of the Royal Navy, told a publication in the US that the £4bn contract could be awarded abroad rather than staying within Britain.
However, sources have claimed that the MoD may have to cut its order from 13 to eight warships as issues have arisen over the costs. It is also claimed that the go-ahead for the ships to be built in Scotland was due before the end of 2014.
A spokesperson for the MoD said: “No decisions have been taken yet. We are working with BAE Systems to review all of the critical elements of the Type 26. Commercial discussions are ongoing, as it is important we take the time to ensure we deliver the best capability to the navy and value for money to taxpayers.”