Royal yacht would boost UK after Brexit, says Tory donor

The next prime minister should commission a new £300 million royal yacht and name her HMY Enterprise, the head of the Conservative Party’s biggest group of donors has said.

Johnny Leavesley, the chairman of the Midlands Industrial Council, said there was “a noticeable void in our ability to project soft power – the absence of a flagship to persuade and entertain”.

It was wrong to consider a replacement for HMY Britannia, which was decomissioned by the Labour government in 1997, to be “a frivolous want, an indulgent extravagance ill-suited to be carried by a public purse”.

Instead, the new vessel would be “a showcase of unashamedly all-british design and manufacturing – something currently not possible under EU procurement rules for government tendering”.

Mr Leavesley heads up a group of business executives, which donate millions to the Conservatives every year. His comments come after Boris Johnson said he would ask the Queen if she wants a new yacht. Jeremy Hunt – Mr Johnson’s rival in the leadership race – has also suggested he backs a new yacht, telling guests at a reception in Whitehall eight months ago: “I think we need expressions of national confidence.”

Writing for The Telegraph’s website today, Mr Leavesley said an exact replacement for the 413ft Britannia “should cost £300million but, it being the Ministry of Defence, would more likely be £350 million.

“This is assuming environmentally friendly credentials and no vulgar leisure gimmicks, as often appear on Arab gin palaces. As for running costs, assuming no berthing fees but higher security costs, 10 per cent of the construction price – £30million a year.”

Mr Leavesley said that it was vital a new ship would not be described as “a yacht”, as this would not reflect her use as a “trade mission, reception and banqueting hall and embassy”.

“She should be considered, above all, as an embassy. Whilst she would not process visas, her main function would be the projection of national prestige and diplomacy.”

Scores of MPS have backed a Telegraph campaign for a new royal yacht, which could act as a catalyst for inward investment deals after leaving the EU.