Financial Times FT.com

MoD looks at delays to carrier contract

By Sylvia Pfeifer and Chris Giles

Published: January 11 2008 02:00 | Last updated: January 11 2008 02:00

The Ministry of Defence is examining possible delays to its £4bn contract for two new aircraft carriers as it struggles to meet Treasury demands for swingeing cuts to its budget.

The MoD had been expected to agree a manufacturing contract with the industry alliance building the Royal Navy carriers as early as next week, but that now looks likely to slip.

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