Liz Truss today said she would continue with plans to replace the Royal Yacht - but would try and seek funding from businesses.
The Foreign Secretary, vying to become the next Prime Minister, also said she regretted comments she made as a teenager in which she called for the monarchy to be scrapped.
The new Royal Yacht - which backers say would be a "floating embassy" promoting British interests around the world - could cost up to £250 million.