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UPDATE 1-UK to delay major spending decisions on nuclear subs

Published 07/16/2009, 12:11 PM
Updated 07/16/2009, 12:16 PM

* Decisions on Trident postponed until next year

* Initial design contract also seen delayed

(Adds further detail)

LONDON, July 16 (Reuters) - The British government is to delay major spending decisions on a 20 billion pound ($32.81 billion) replacement for its nuclear weapons system until next year, a government official said on Thursday.

The official, speaking on condition of anonymity, said the government was postponing key decisions on a replacement for its Trident submarine-based system because it wanted to see the outcome of nuclear non-proliferation talks next May.

"Because of the review conference in May next year, we will delay decisions that involve spending significant sums of money into 2010," the official said.

The decision will raise new questions about Prime Minister Gordon Brown's commitment to proceed with an expensive new weapons system when government borrowing is ballooning due to the recession.

It means key spending decisions on the new weapons system are likely to be delayed until after the next national election, due by early June. Polls show Brown's Labour party is likely to lose that election.

The government had been due to place an initial design contract for the new submarine towards the end of this year but officials indicated that would now be delayed.

The initial contract would have committed the government to spending up to 3 billion pounds, according to trade publications. (Reporting by Adrian Croft; editing by Philippa Fletcher)

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