MoD records over £1.2 billion in write-offs across aircraft, ships and drones in one year
The Ministry of Defence said it wrote off more than £1.2 billion in 2025/26, covering cancelled upgrades, decommissioned vessels and lost drones.
In its 2025/26 accounts, the Ministry of Defence reported write-offs totaling £1.23 billion across 17,622 cases. The largest items were the termination of the RAF's Shadow Mk2 spy-plane upgrade (£254 million) and the cancellation of the Army's Project Morpheus radio programme after spending over £690 million. The Navy recorded losses from taking HMS Richmond (£46 million), HMS Chiddingfold (£11 million) and RFA Argus (£9.5 million) out of service.
Other expenses included demolition of unwanted structures, a cancelled solar-farm scheme and the loss of several drones and an underwater robot. The MoD also issued £169 million in special payments, including £48.5 million for historic cases involving gay veterans. A Taxpayers' Alliance spokesperson criticised the scale of the waste, while a MoD spokesman said the write-offs do not necessarily reflect cash outflows.
Why it matters
The write-offs highlight significant financial waste in UK defence spending, raising questions about procurement oversight.
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