BAE 'must raise game' after £3bn overspend

Defence giant BAE Systems was today warned to "raise its game" after a report showed its projects were to blame for most of a £3.1billion government overspend on equipment.

Details of the huge cost overrun on submarines, warplanes and missiles were released amid concern over shortages of basic kit such as body armour in Iraq, after the death of Sergeant Steven Roberts.

The extra cost, equivalent to six per cent of the MoD budget for major equipment in 2002-03, was described as " disappointing" by Sir John Bourn, head of the National Audit Office watchdog.

Its Major Projects Report 2003, out today, also revealed an average nine-month increase in forecast delays getting equipment into service.

Four projects involving BAE - the Eurofighter Typhoon warplane, Nimrod reconnaissance planes, Astute submarines and Brimstone anti-tank missiles - accounted for 87 per cent of the overspend.

Defence procurement minister Lord Bach said: "Industry must recognise its share of responsibility for the serious difficulties encountered."