Question to the Ministry of Defence:

To ask the Secretary of State for Defence, with reference to page 120 of his Department’s Annual Report and Accounts 2022 to 2023, HC 1468, how the constructive loss related to HMS ATHERSTONE withdrawal from service arose.

Constructive losses are not cash losses and do not cost the department. For example, when decommissioning a ship the accounts would show a 'loss' for the vessel. In fact, future savings made from not having to maintain an older vessel will be made available for other priorities.

HMS Atherstone was decommissioned in 2017 as a savings measure. The constructive loss refers to this early retirement, which allowed resources to be invested into new capabilities rather than the increasing costs of maintaining an aging vessel.