Page last updated at 22:08 GMT, Monday, 29 June 2009 23:08 UK

Navy carriers '£1bn over budget'

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The project to build Britain's biggest warships is already £1bn over budget, only a year after the contract to build them was awarded.

The BBC has learned that between 400 and 500 jobs could be cut to help reduce costs in a "fight for the programme's survival".

Robert Peston reports.

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