Labour was under fire last night over claims it was selling off two Royal Navy ships at a bargain-basement ‘knock-down price’.

The Government was accused of offering two amphibious assault ships to Brazil for just £20 million – potentially nearly a tenth of amount UK taxpayers had spent on them in recent years.

HMS Albion and HMS Bulwark were retired last year by Defence Secretary John Healey as part of wider cost-saving plans.

Ministers claimed that scrapping older military equipment would help with the implementation of the strategic defence review due to be unveiled later this year.

But last night, sources told the Mail on Sunday that the Ministry of Defence was asking just £20 million for both ships despite having spent almost 10 times on the two vessels over the last 14 years.

They pointed out that only last month, Defence Minister Maria Eagle admitted that £132.7 million had gone on refits to HMS Albion and Bulwark since 2010.

A further refit of HMS Bulwark, due to have carried out over 2022/25, was estimated at another £72.1 million though the final bill was now being reviewed as the ship ‘was retired’ before that work was completed.

However, Shadow Armed Forces Minister Mark Francois said last night: ‘A few years ago, the Commons Defence Committee described the idea of disposing of these two key amphibious ships as ‘militarily illiterate’.

A refit of HMS Bulwark, due to have carried out over 2022/25, was estimated at another £72.1 million though the final bill was now being reviewed as the ship ‘was retired’ before that work was completed

Defence Minister Maria Eagle admitted that £132.7 million had gone on refits to HMS Albion (pictured) and Bulwark since 2010

HMS Albion and HMS Bulwark were retired last year by Defence Secretary John Healey as part of wider cost-saving plans

‘Given how much the MoD has spent on refitting them in recent years, to suddenly flog them off at a knock-down price, is ‘financially illiterate’ as well.’

A senior military source said: ‘I understand cuts need to be made, but if you keep selling off the capital assets what happens when you need to mount an operation?

‘We will be left sitting as a Third World navy while Brazil will field a fully integrated amphibious force.’

He added: ‘This is so short sighted. These ships are so versatile, they can be used for evacuations as well as delivery of humanitarian aid and, of course, for fighting a war.’

The Ministry of Defence declined to comment.