The UK Ministry of Defence (MoD) has recorded an £86.7m ($111m) constructive loss in its new Annual Reports and Accounts 2023/24 associated with ‘Type 23 Out of Service Date Change’ (OSD) that appear to be linked to the confirmed decommissioning of Type 23 frigates HMS Argyll and HMS Westminster.

Both warships were cut from the Royal Navy surface fleet in January 2024 when the then Secretary of State for Defence, Grant Shapps, confirmed HMS Argyll would be sold to UK shipbuilder BAE Systems to be used as an apprentice training platform. Meanwhile, HMS Westminster, deteriorating alongside in Devonport naval base, has seen its refit suspended as it effectively awaits disposal.

The announcements were part of a wider pitch to the UK’s naval sector, with UK government officials then extolling the current period as a ‘Golden Age’ for shipbuilding in the country.

At present, eight Type 26 and five Type 31 frigates are planned to be introduced over the next decade, while a series of multirole support ships are planned to be developed, while Spanish shipbuilder Navantia’s UK entity has been charged delivering on the Fleet Solid Support Ship (FSS) programme.

However, the Royal Navy surface fleet is vastly reduced, with just nine Type 23 frigates and six Type 45 destroyers in service by the end of 2024. In April 2024 just five frigates were operational with the remaining six theoretical hulls in refit.

In reality, two of the six hulls in refit were those of HMS Argyll and HMS Westminster, which have since been axed. The ships have a combined service of 63 years, with HMS Argyll itself entering a refit and sustainment process in August 2022 at Babcock’s Frigate Support Centre facility in Devonport that theoretically extending the vessel’s service life to around 2027-2028.

However, HMS Argyll in January 2024 was still in the recertification programme, with uncertainty over its fate ended with the announcement of its sale to BAE Systems.

Type 23 and Type 45 fleets eye OSD in 2030s

In September 2023 the then UK government stated that the Type 23 frigates were not subject of a formal life extension programme, rather the vessels were undergoing a planned series of upkeep periods in order to maintain their condition and introduce capability updates.

Total funding committed to this process through to the respective OSD for the Type 23s is £676.7m ($864.3m) over 10 years, this includes the costs allocated in financial year 2023-24.

On current plans, the last Type 23 frigate will transition out of service in 2035 while it is expected that the last Type 45 destroyer will transition out of service in 2038.

The UK government does not disclose the individual OSDs of its warships and submarines, citing operational security reasons.