2.8 Cost increases or funding cuts to programmes affect the ability of the Department to meet the equipment requirements identified by Commands. We identified examples where the original capability requirement was modified, sometimes significantly, to remain within cost parameters. For example:
• funding cuts in 2012 reduced the number of Ajax armoured vehicle numbers from an initial requirement of 761 to a contractual commitment of 589;
• the Department is proposing to upgrade 148 Challenger 3 tanks against a requirement of 190, based on revised costs to properly reflect user requirements;
• the Department reduced the number of P-8A Poseidon maritime patrol aircraft it will purchase from 12 to nine, the minimum it believed necessary; and
• when the Type 26 frigate programme team received approval to enter the 'assessment' phase in 2010, it expected to gain approval for manufacture in 2013. Approval for the assessment phase was delayed until March 2010. The estimated cost increased from £8.2 billion in 2009 to £12.1 billion by 2012. Contributory factors included an increase in the planned number of ships, from 10 in 2009 to 13 in 2012, and the need to re-plan in 2010 to reflect a change in requirement for an increased level of capability for the class as a whole. Despite efforts by the programme team and supplier, costs could not be reduced to a level deemed affordable. Eventually, the Department reduced its requirement to eight ships, and will also now purchase five Type 31e frigates, capable of a more limited range of tasks.