Navy hit by £1bn rise in carrier plan

Plans to build new aircraft carriers for the Royal Navy are at risk because costs have soared by £1billion, it was revealed last night.

A leaked memo showed builders of the aircraft carriers, HMS Queen Elizabeth and HMS Prince of Wales, known as QE Class carriers, were worried.

It said: "The MoD will publish its annual report and accounts in July; these will show £1billion of QE Class cost growth. This is a very real fight for the programme's survival."

The memo, written for the chief executives of companies participating in the project, was leaked to the BBC.

But sources say there is little prospect of the project being dropped. The MoD said: "We took the decision to delay the two future aircraft carriers in December 2008."