MoD Equipment Plan 2021-31

Public Accounts Committee Closed Inquiry
Opened: 21 Feb 2022 Closed: 2 Sep 2022 Parliament page
The Committee will take evidence on the NAO’s report on the annual Ministry of Defence Equipment Plan: https://www.nao.org.uk/report/the-equipment-plan-2021-to-2031/ The Equipment plan sets out the MoD’s intended investment in equipment and support projects over the next 10 years . Each year the NAO publishes a report, published in parallel with the … Read more
11 Recommendations
22 Conclusions
1 Report
1 Oral session
1 Letter
1 Event
Activity timeline 4 events
2 Sep
2022
Report published
22 Jun
2022
Correspondence
11 May
2022
Report published
28 Feb
2022
Oral evidence
Oral evidence sessions 1 session
28 Feb 2022
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MoD Equipment Plan 2021-30
Air Marshall Richard Knighton · Ministry of Defence Charlie Pate · Ministry of Defence David Williams CB · Ministry of Defence Sir Simon Bollom · Ministry of Defence
Title HC No. Published Items Response
Fifty-Second Report - Ministry of Defence Equipment Plan 2021–31 HC 1164 11 May 2022 33 Responded
Recommendations & Conclusions
10 results
Clear
3 Recommendation Accepted
Fifty-Second Report - Ministry of …
The Plan’s affordability relies on the Department achieving a number of different types of savings,...
The Plan’s affordability relies on the Department achieving a number of different types of savings, including £7 billion of ‘cost reductions’ by 2031. The Top Level Budgets (TLBs) do not yet have plans to achieve £4 billion of the ‘cost … Read more
Government Response
TLBs have targets and plans to achieve these savings, closely monitors and scrutinises Top Level Budget (TLB) planned cost reductions in the annual budget cycle, and considers that the savings are achievable.
HM Treasury
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10 Conclusion Accepted
Fifty-Second Report - Ministry of …
An example of new funding for more established programmes is the new radar for the...
An example of new funding for more established programmes is the new radar for the Typhoon. Although it had been in development for several years before the decision to buy it was announced in 2015, the Department did not include … Read more
Government Response
The government agrees with the committee's conclusion, stating that future Equipment Plans will include an additional section explaining changes made and planned to address emerging developments, recognizing the need to balance competing priorities.
HM Treasury
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11 Recommendation Accepted
Fifty-Second Report - Ministry of …
More widely, the Committee asked whether the Plan was now based on a large number...
More widely, the Committee asked whether the Plan was now based on a large number of past assumptions, observing that it does not include funding for capabilities 7 Q2 8 Q8 9 Q86 10 Qq 7–8 11 Q88 12 Q64 … Read more
Government Response
The government agrees with the recommendation and commits to including an additional section in future Equipment Plans by Autumn 2022, explaining changes and plans made to address emerging developments and the impact of the conflict in Ukraine.
HM Treasury
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12 Recommendation Accepted
Fifty-Second Report - Ministry of …
However, the NAO report found that in the Plan the Department has only set aside...
However, the NAO report found that in the Plan the Department has only set aside £1.05 billion from 2026–27 to 2030–31 to exploit research to develop usable military capabilities.24 This expenditure is only 0.4% of the Plan’s total budget, although … Read more
Government Response
The government agrees with the recommendation and commits to including an additional section in future Equipment Plans by Autumn 2022, explaining changes and plans made to address emerging developments and the impact of the conflict in Ukraine.
HM Treasury
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13 Conclusion Accepted
Fifty-Second Report - Ministry of …
The Department told us that, thanks to the funding increase in the Spending Review and...
The Department told us that, thanks to the funding increase in the Spending Review and the Integrated Review process, it thinks the Plan is now affordable, although there are financial and capability risks in its delivery.27 The Department also told … Read more
Government Response
The government agrees with the committee's conclusion, recognizing the need for ongoing discipline to maintain the affordability of the Equipment Plan. It commits to including an additional section in future Equipment Plans that explains changes and planned developments to address emerging issues.
HM Treasury
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14 Conclusion Accepted
Fifty-Second Report - Ministry of …
This is the first time the Department has claimed the Plan is affordable for four...
This is the first time the Department has claimed the Plan is affordable for four years. And given the NAO has repeatedly reported on the Department’s focus on short term affordability at the expense of long-term value for money, we … Read more
Government Response
The government agrees and recognizes the impact of the conflict in Ukraine on equipment spending, stating this is being examined. It commits that future Equipment Plans will include an additional section explaining changes made and planned to address emerging developments.
HM Treasury
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15 Recommendation Accepted
Fifty-Second Report - Ministry of …
We asked why the Department is forecasting to spend more than its capital budget in...
We asked why the Department is forecasting to spend more than its capital budget in seven of the next 10 years. The Department responded that the differences in those years were quite small and it judged them to be manageable.32 … Read more
Government Response
The government agrees with the recommendation and commits to including an additional section in future Equipment Plans by Autumn 2022, explaining changes and plans made to address emerging developments and the impact of the conflict in Ukraine.
HM Treasury
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19 Conclusion Accepted
Fifty-Second Report - Ministry of …
The Plan’s affordability depends on the Department achieving a number of different types of savings...
The Plan’s affordability depends on the Department achieving a number of different types of savings by March 2031. As the NAO reported, these amount to nearly £22 billion, which comprises around £12 billion of ‘management adjustments for realism’, £7 billion … Read more
Government Response
The government agrees with the Committee’s recommendation and says that TLBs have targets and plans to achieve these savings, and the department closely monitors and scrutinises Top Level Budget (TLB) planned cost reductions in the annual budget cycle.
HM Treasury
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20 Recommendation Accepted
Fifty-Second Report - Ministry of …
Pressed on the £4 billion for which there are no plans yet, the Department explained...
Pressed on the £4 billion for which there are no plans yet, the Department explained that the target is based on an assumption of what the TLBs can deliver. The Department told us that Head Office scrutinises about 80 of … Read more
Government Response
The government agrees with the Committee’s recommendation, stating that it has been implemented, and TLBs have targets and plans to achieve these savings. The department closely monitors and scrutinises Top Level Budget (TLB) planned cost reductions in the annual budget cycle and will include further information on TLB cost reductions in the upcoming Equipment Plan 2022 due to be published in Autumn 2022.
HM Treasury
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21 Conclusion Accepted
Fifty-Second Report - Ministry of …
We noted that £2.6 billion of the £4 billion savings—two thirds of the total—needs to...
We noted that £2.6 billion of the £4 billion savings—two thirds of the total—needs to be achieved by March 2025. This is despite the fact that contractual commitments limit TLBs’ flexibility to make savings, for example 62% of Air Command’s … Read more
Government Response
TLBs have targets and plans to achieve these savings, closely monitors and scrutinises Top Level Budget (TLB) planned cost reductions in the annual budget cycle, and considers that the savings are achievable.
HM Treasury
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Government Response AI assessment · 33 of 11 classified
Accepted 10
Acknowledged 18
Not Addressed 4
Rejected 1
Total 11 recs + 22 conclusions
Correspondence 1 letter
22 Jun 2022 Correspondence from the Ministry of Defence, relating to the Public Accounts Committee Report – MoD Equipment Plan 2021-31, dated 21 June 2022
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