UK Ministry of Defence Writes Off Over £1.2 Billion in a Single Year

The UK's Ministry of Defence (MoD) has reported write-offs exceeding £1.2 billion in the fiscal year 2025/26, attributed to a range of decommissioned assets and cancelled projects. This figure follows a previous year's write-offs totaling £1.9 billion, bringing the department's two-year loss to over £3 billion.

Among the largest individual losses was £408 million associated with building work at the Atomic Weapons Establishment. An upgrade program for the Royal Air Force's Shadow spy planes, designated the Mk2, was canceled at a cost of £254 million due to significant delays and escalating expenses. The Army's Project Morpheus, intended to replace the Bowman battlefield radio system, incurred a £236 million cancellation cost after substantial prior investment.

The Royal Navy also experienced financial setbacks, with a £46 million hit from decommissioning the frigate HMS Richmond, £11 million from the minehunter HMS Chiddingfold, and £9.5 million from retiring the casualty ship RFA Argus.

Further expenditures included £31.7 million for demolishing surplus buildings and £6.2 million for dismantling a structure at the Porton Down chemical weapons laboratory. An additional £86 million was written off for partially completed projects.

Specific equipment losses encompassed a £2.4 million Resolute Valkyrie drone, two Eagle drones valued at £324,000 each, and an underwater robot deemed beyond economic repair at £674,000.

In addition to these project-related losses, the MoD made 7,080 special payments amounting to £169 million. This sum includes £48.5 million in compensation for historical cases involving veterans dismissed for being gay.

Responding to the figures, an MoD spokesperson stated that the department continually reviews its programs and assets to ensure they meet the armed forces' capabilities. They also noted that accounting write-offs do not necessarily equate to direct cash losses.