ARMOUR MBT 2025

Rating: Compared to financial year 24/25 Q4, the NISTA/SRO Delivery Confidence Assessment (DCA) rating at 25/26 Q4 decreased to Red. This is primarily due to the following factors. 1. Forecast delays and risk to Initial Operating Capability and Full Operating capability in delivery from the Prime Contractor. 2. Demonstration phase trials are still progressing to prove the performance of the tank but the time taken to do this is likely to impact on training and familiarisation

Schedule: Compared to financial year 24/25-Q4, the programme's end-date at 25/26-Q4 remained the same at 22/05/2031. This is primarily due to the following factors. 1. This forecast date remains subject to confirmation and could be subject to change if anticipated delays in equipment deliveries are encountered.

Cost: Compared to financial year 24/25-Q4, the project's departmentally agreed Whole Life Cost at 25/26-Q4 (measured in £m) increased from £1916.53M to £1944.09M. This is primarily due to the following factors. 1. Adjustments to reflect the anticipated delays in deliveries from the Prime Contractor. A revised costing profile is expected in Q1 26/27.

Source: NISTA Major Projects Annual Report 2025-26 (data)

Rating: The Project's Delivery Confidence Assessment rating at 24/25-Q4 is AMBER, compared with the Infrastructure and Projects Authority's assessment last year of AMBER. This is due to the following factors. 1. Key supplier issues that could impact delivery. 2. The Delivery of the broader capabilities required to transition the CR3 platform into service currently has encountered funding gaps which could impact delivery within the required timeline. 3. Resource shortfalls and challenges to recruit the required skills and experience levels in the Army Programme Management Office, Delivery Equipment and Support teams (DE and S) and key suppliers presents another key challenge.

Schedule: Compared to financial year 23/24-Q4, the project's end-date at 24/25-Q4 increased from 30/06/2030 to 22/05/2031. This is primarily due to the following factors: This a correction from the previously released information. The Investment Approval Committee agreed forecast end date remains unchanged as 22/05/2031.

Cost: Compared to financial year 23/24-Q4, the project's departmentally agreed Whole Life Cost at 24/25-Q4 (measured in £m) decreased from 1986 to 1916. This is primarily due to the following factors. Necessary adjustments to reflect the timing and level of approved costs related to the procurement of Active Protection System and additional EPSOM armour.

Source: NISTA Annual Report 2024-25 (data)

Rating: Compared to financial year 22/23-Q4, the Infrastructure and Project Authority's Delivery Confidence Assessment rating at 23/24-Q4 remained at Amber. This is primarily due to the following factors. 1. Global supply chain risks and key supplier issues that could impact delivery. 2. Resource shortfalls and challenges to recruit the required skill and experience levels in the Army Programme Management Office; DE and S and key suppliers. 3. Delivery of broader capabilities required to transition the Challenger 3 (CR3) platform into service; these currently have unresourced gaps which could impact delivery within the required timeline. 4. Ability to obtain approvals and contract at pace to deliver the remaining scope of the programme in an acceptable timeframe. This mainly pertains to the Active Protection System.

Schedule: Compared to financial year 22/23-Q4, the project's end-date at 23/24-Q4 remained scheduled to finish on 2030-06-30. This is primarily due to the following factors. The programme remains on track to achieve its key milestones. These are. Initial Operating Capability (1 Squadron of tanks with crews trained to the appropriate standard and held at readiness) – November 2027. Full Operating Capability (148 tanks delivered and all Key User Requirements met subject to subsequent approvals). November 2030. The platform Critical Design Review was achieved in January 2023 providing confidence in the design and readiness for the next phases of delivery.

Cost: Compared to financial year 22/23-Q4, the project's departmental-agree Whole Life Cost at 23/24-Q4 increased from 1435m to 1987m. This is primarily due to the following factors. At Q4 22/23 the Baseline Whole Life cost was 1435m. Following completion of EPSOM (New Armour System) negotiations this decreased by 13m to 1422m. As at March 2024 the new WLC of 1985m includes the costings for the full EPSOM 148 Inert sets and Active Protection System D&M. The review note agreeing this uplift is still subject to approval by the Treasury.

Source: IPA Annual Report 2023-24 (data)