Private donors called on to keep new national flagship project afloat

Private companies will be asked to pay for the running of Boris Johnson's new national flagship to bring down the costs to the taxpayer, The Telegraph can disclose.

Lance Batchelor, a former naval officer and an ex-chief executive of Saga, has been brought into the Government as the chairman of the project.

The flagship will replace the Royal Yacht Britannia, which was decommissioned by Labour in 1997.

Ministers had envisaged that the ship would be run by a charitable trust, with companies sponsoring the construction to bring the cost down. However, these plans have had to be scaled back due to the impact of the Covid pandemic on companies' balance sheets.

Instead, the Ministry of Defence (MoD) will cover the cost of the basic construction, with companies asked to sponsor different parts of the ship. UK exporters will then be asked to hire the ship to promote British commerce and skills on a "pay as you go" basis.

Mr Batchelor ran Saga from March 2014 until February 2020 and led the design, build and introduction of two new cruise ships, Spirit of Discovery and Spirit of Adventure, both of which were launched by the Duchess of Cornwall.

Mr Batchelor and a team of business figures originally developed the plans for the ship and were behind the artist's impression of the vessel published by Downing Street last month. The team now want UK designers to get in touch to help refine the artist's impression.

The hope is that the new ship, set to enter service in four years, will be at sea 300 days a year promoting British business and helping to encourage trade investment to the UK.

The ship is expected to cost £150 million. Ben Wallace, the Defence Secretary, suggested last week that the MoD could pay £40 million towards its cost, with construction "underwritten" by his department. This means a sizeable chunk of the cost could be picked up by private companies.

The Royal Navy will crew the vessel with 60 trainee sailors to keep running costs to a minimum and fill a gap in platforms to help train the naval officers of the future.

The Government believes awarding the contract through the MoD means the construction of the ship can be directed to UK yards, including Camell Laird in Liverpool or Harland & Wolff in Belfast.

Although the response from Buckingham Palace has been muted, the hope among senior government figures is that over time the new ship will be used by members of the Royal family on official visits overseas.

Senior government figures hope construction of the new ship will start in 2022 to allow the Queen to crack champagne against its hull in the year of her Platinum jubilee.

Mr Batchelor is a trustee of the White Ensign Association, a charity that provides personal help and advice for all serving and former members of the Royal Navy. He could not be reached for comment by The Telegraph.

The Ministry of Defence confirmed that Mr Batchelor – who is also the lead non-executive director of the Navy Board – has been appointed interim non-executive chairman of the National Flagship Programme Board for nine months until a permanent chairman was recruited.

A source added that he had commissioned the drawings of the new ship. They added that there were "no current plans" to let companies hire the new flagship, although "the operating model has yet to be decided".

An MoD spokesman said: "The capital costs of building the national Flagship will be met from within the Ministry of Defence's settlement. As previously announced, the ship will be crewed by the Royal Navy, providing valuable experience for our personnel."

The Telegraph has been campaigning since 2016 for a replacement for HMY Britannia. The vessel will be used to host high level trade negotiations and trade shows and will sail all over the world promoting British interests, Downing Street said.