Plans for a national flagship yacht to promote the UK abroad have been shelved.
Defence Secretary Ben Wallace told MPs yesterday that a competition to build the vessel, estimated to cost up to £250million, had been terminated.
The ship was commissioned by former PM Boris Johnson last year to host trade fairs and diplomatic events.
No.10 said it was right to "prioritise" spending "at a time when difficult spending decisions need to be made".
The move comes as the government searches for spending cuts ahead of the Budget on Thursday, November 17.
Labour's shadow defence secretary, John Healey, said he welcomed news that "the previous prime minister's vanity project has been scrapped".
Britannia successor
The BBC says the vessel, which was never given a name, would have succeeded the Royal Yacht Britannia, which was retired in 1997 after 44 years in service.
The new ship was originally meant to cost £150million when first announced, but Mr Wallace last year put the price at between £200million and £250million.
The government had said it wanted the ship to be built in the UK, and enter service in 2024 or 2025.
Speaking in the House of Commons, Mr Wallace said the government was "accelerating" the development of research and surveillance ships.
He added that, after Russia's invasion of Ukraine, it was "right that we prioritise delivering capabilities that safeguard our national infrastructure".
The retired Royal Yacht Britannia is today berthed in Leith, near Edinburgh.
Jewel in the crown
At an event to promote the new vessel last year, Mr Wallace promised it would be the "jewel in the crown" of the government's shipbuilding strategy.
"Our ambition is for something special - not just a cutting-edge ship, but a truly national flagship," he said.
"I want the grandparents of the future, to boast to their grandchildren and say one day 'I helped to build that ship'."
In a report last year, the Commons defence committee estimated the flagship would require 50-60 of a crew and cost £20million-£30million a year to run.