Ajax: Doubt cast on future of new Army armoured vehicle

A new report has cast doubt over the future of an armoured vehicle being built for the Army in south Wales.

The Ajax project employs 800 people across two sites at Merthyr Tydfil and Oakdale, and supports more than 4,000 jobs across the UK.

The National Audit Office (NAO) warned there was a risk that troubles with the project "might prove insurmountable".

A Ministry of Defence (MoD) spokesperson said it would "not accept a vehicle that is not fit for purpose".

But the spokesperson said the MoD was working with the manufacturer to resolve noise and vibration issues.

Built by General Dynamics, the Ajax armoured vehicles are supposed to provide the Army with the latest cutting edge digital battlefield technology.

As of December 2021, more than 300 personnel may have been harmed by vibration and noise during testing, which has led to the significant delays.

A source close to workers at the Merthyr plant said there was frustration at the delays and ongoing issues, and that a cloud was hanging over employees there.

The NAO said there were "challenges and difficult decisions" if the MoD is to deliver the project.

Its report found that the MoD itself has no confidence in its own target for Ajax to be fully operational by April 2025.

It also warned that it could take until the end of 2022 to find a solution, because the MoD and the manufacturer disagree on the safety of Ajax.

Meg Hillier, who chairs the House of Commons' Public Accounts Committee, said the NAO report "reads like a checklist for major project failure where almost everything that can go wrong, did go wrong".

The MP said: "Ajax has now joined the sorry pantheon of government projects which have gone off the tracks.

"The Army is forced to continue using increasingly old and obsolete equipment which, aside from adding cost, reduces our capability at a time when dangers are only increasing."

Ajax was supposed to be ready in 2017, but has already been pushed back twice.

A contract was signed for 589 vehicles in 2014 and more than £3bn has been spent so far, but only 26 vehicles have been received.

The delays have ramifications for how the Army will achieve its planned restructure by 2025.

In their findings, the NAO said the approach of both the MoD and General Dynamics was flawed from the start as it did not understand the scale of the problem.

It concluded that the MoD had not demonstrated value for money and there was a risk of further expenditure because of the need to maintain existing ageing armoured vehicles.

Gareth Davies, head of the NAO, said: "We have seen similar problems on other defence programmes, and the department must demonstrate that it understands the fundamental improvement required in its management of major programmes."

Labour's Merthyr Tydfil and Rhymney MP, Gerald Jones, said the NAO report "makes for very grim reading".

"I've visited the facility in Merthyr Tydfil on many occasions and I have seen the dedication, pride and professionalism staff at General Dynamics have shown the Ajax programme.

"This damning report shows that the Ministry of Defence has not just let down staff, but also our armed forces who are in great need of vital new armoured fighting vehicles."

An MoD spokesperson said: "As we have made clear, Ajax is a troubled programme, and we will not accept a vehicle that is not fit for purpose.

"As the NAO recognises, we are working with General Dynamics to resolve the noise and vibration issues with a view to Ajax being successfully delivered to the Army.

"We continue to meet our obligations to NATO and will mitigate any capability gap through a range of alternative reconnaissance capabilities."

General Dynamics said it remained committed to the programme.

A spokesperson said: "Built in Wales, Ajax will be the most technologically advanced armoured fighting vehicle in the world, providing much needed state-of-the-art capability to British forces."