The Equipment Plan 2023–2033

Public Accounts Committee Closed Inquiry
Opened: 4 Jan 2024 Closed: 28 May 2024 Parliament page
The Ministry of Defence (MoD) publishes an annual Equipment Plan, where it sets out its spending plans on equipment procurement and support projects over the next decade to keep the nation secure. The Committee’s report on the MoD’s 2022-32 Plan found that equipment is arriving into service many years late … Read more
5 Recommendations
22 Conclusions
1 Report
1 Oral session
5 Letters
1 Event
Activity timeline 9 events
28 May
2024
Report published
11 Mar
2024
Correspondence
8 Mar
2024
Report published
7 Mar
2024
Correspondence
22 Jan
2024
Oral evidence
22 Jan
2024
Correspondence
22 Jan
2024
Correspondence
22 Jan
2024
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
11 Dec
2023
Correspondence
Oral evidence sessions 1 session
22 Jan 2024
View on parliament.uk
Defence Equipment Plan 2023-33
Andy Start · Ministry of Defence David Williams CB · Ministry of Defence Lieutenant General Sir Robert Magowan KCB CBE · Ministry of Defence Tom Wipperman · Ministry of Defence
Title HC No. Published Items Response
Nineteenth Report - MoD Equipment Plan 2023–2033 HC 451 8 Mar 2024 27 Responded
Recommendations & Conclusions
27 results
2 Conclusion Acknowledged
Nineteenth Report - MoD Equipment …
Ensure all MoD budget holders consistently adopt the same approach to forecast costs.
The Plan is inconsistent because some parts of the Armed Forces include the costs of all capabilities that the government expects them to deliver, while others only include those they can afford. The MoD’s aim is that the Plan provides … Read more
Government Response
The government agrees with the recommendation and states that, for transparency and ease of comparison, the department will seek to standardise the data produced and presented for the Equipment Plan starting from the Annual Budgeting Cycle planning round process.
HM Treasury
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3 Conclusion Rejected
Nineteenth Report - MoD Equipment …
Report trends in MoD nuclear funding and its impact on conventional capability budgets.
The MoD’s prioritisation of the Defence Nuclear Enterprise carries a risk that this will further squeeze budgets for conventional capabilities. Maintaining the nuclear deterrent remains the MoD’s highest defence priority. This year’s Plan is the first time that the MoD … Read more
Government Response
The government rejected the recommendation, stating that hypothesizing about future funding shifts from conventional to nuclear budgets would be speculative and not useful for planning.
HM Treasury
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4 Conclusion Accepted
Nineteenth Report - MoD Equipment …
Develop and communicate clear, funded schedules for military equipment procurement and support work.
Uncertainty about the MoD’s future demand for equipment hinders its work with industry to develop a resilient, responsive, and cost-effective supply chain. Key lessons from the war in Ukraine include the need for the Armed Forces to invest in weapon … Read more
Government Response
The government agreed, stating it is already addressing the recommendation through the Integrated Procurement Model, Defence and Security Industrial Strategy, and other initiatives, including continuing to publish the Acquisition Pipeline twice yearly.
HM Treasury
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5 Conclusion Accepted
Nineteenth Report - MoD Equipment …
Include assessment of new procurement strategy's impact on improving capability delivery in next Plan.
The MoD’s strategy for replacing ageing capabilities is undermined by the slow delivery of new systems, resulting in military capability gaps. Despite the MoD working with prime contractors to better understand its supply chain, increased international demand for key components … Read more
Government Response
The government agreed, outlining that the new Integrated Procurement Model's implementation begins in April 2024 and will continue through 2024-2025, with monitoring of delivery pace and appropriate updates.
HM Treasury
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6 Conclusion Accepted
Nineteenth Report - MoD Equipment …
Assess reliance on allied support for capability requirements and develop risk mitigation strategies.
The MoD is becoming increasingly reliant on the UK’s allies to protect the UK’s national interests, which carries the risk that such support might not always be available. Recent international developments, including the war in Ukraine, have reinforced the importance … Read more
Government Response
The government agreed, stating that allied support is already understood, reviewed as part of capability planning, and rigorously scrutinized during force testing, with identified risks regularly captured and reviewed for mitigation.
HM Treasury
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1 Conclusion Rejected
Nineteenth Report - MoD Equipment …
Committee receives evidence from MoD regarding the Equipment Plan 2023–2033.
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Ministry of Defence (the MoD) on the Equipment Plan 2023–2033 (the Plan).2
Government Response
The government disagreed with an unspecified recommendation, which it interpreted as a request to set out a list of capabilities that would be cut if budget assumptions are not met, stating this would create operational security risks and undermine industry confidence.
HM Treasury
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7 Conclusion Rejected
Nineteenth Report - MoD Equipment …
MoD Equipment Plan affordability contingent on uncertain 2.5% GDP defence spending pledge.
The MoD told us that if the government fulfils its commitment to spending 2.5% of Gross Domestic Product (GDP) each year on defence, the Plan could well be affordable.18 The current defence budget is 2.1% of GDP, which increases to … Read more
Government Response
The government disagrees with the implied recommendation, stating the Prime Minister's commitment to 2.5% GDP by 2030 and explaining that it will not set out a list of potential capability cuts due to operational security risks.
HM Treasury
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8 Recommendation Rejected
Nineteenth Report - MoD Equipment …
MoD lacks long-term budget certainty beyond March 2025, hindering equipment planning.
The MoD asserted that it was not a gamble to assume that its budget will increase to 2.5% of GDP.21 At present, however, the MoD has budget certainty only to the end of March 2025, which hinders its ability to … Read more
Government Response
The government explicitly disagreed with the committee's implied recommendation for more budget certainty, stating the Prime Minister's commitment to 2.5% GDP defence spending by 2030 and detailing existing commercial policy changes. It also stated it would not set out a list of capability cuts.
HM Treasury
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9 Conclusion Accepted
Nineteenth Report - MoD Equipment …
MoD budget holders use inconsistent approaches in forecasting equipment costs and capabilities.
The MoD’s aim is that the Plan provides a reliable assessment of the affordability of its equipment programme and demonstrates to Parliament how it will manage its funding to deliver equipment projects.26 The MoD’s headquarters provides the Front Line Commands … Read more
Government Response
The government agrees and will standardize the data production and presentation for the Equipment Plan from the Annual Budgeting Cycle planning round process to improve transparency and comparability, with a target implementation date of Spring 2025.
HM Treasury
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10 Recommendation Accepted
Nineteenth Report - MoD Equipment …
Inconsistent MoD planning approaches undermine transparency and parliamentary scrutiny of equipment affordability.
This flexibility means that users of the Plan, including Parliament, cannot compare Commands and other budget holders on a like-for-like basis.29 The MoD assured us that its ability to understand the Armed Forces’ capability and operational risks was unaffected by … Read more
Government Response
The government agrees with the recommendation and commits to standardizing the data produced and presented for the Equipment Plan from the Annual Budgeting Cycle planning round process, with a target implementation date of Spring 2025.
HM Treasury
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11 Conclusion Rejected
Nineteenth Report - MoD Equipment …
MoD prioritises swift delivery of nuclear programmes to de-risk and limit long-term costs.
Maintaining the nuclear deterrent remains the MoD’s highest defence priority. This year’s Plan is the first time that the MoD has set out its nuclear budget separately from other defence spending.35 The MoD has sought to de-risk and limit the … Read more
Government Response
The government rejects the committee's observation regarding the nuclear budget, stating that speculating on future funding shifts from conventional to nuclear is unhelpful for planning, and nuclear funding is ringfenced.
HM Treasury
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12 Conclusion Rejected
Nineteenth Report - MoD Equipment …
MoD nuclear programmes are healthier but future funding requests for HM Treasury remain possible.
The MoD said that its nuclear programmes are in a much healthier position than for many years.37 The MoD has agreed a minimum 10-year budget with HM Treasury for its nuclear activities of £109.8 billion, and it said that the … Read more
Government Response
The government rejects the committee's observation regarding the nuclear budget, stating that speculating on future funding shifts from conventional to nuclear is unhelpful for planning, and nuclear funding is ringfenced.
HM Treasury
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13 Conclusion Rejected
Nineteenth Report - MoD Equipment …
Prioritising nuclear programmes risks squeezing conventional capability budgets, a recognised funding challenge.
The MoD’s prioritisation of the nuclear enterprise carries a risk that this will further squeeze budgets for conventional capabilities, because if additional money is not forthcoming, the MoD has the flexibility to redirect money from its conventional equipment budgets to … Read more
Government Response
The government rejects the committee's observation regarding the nuclear budget, stating that speculating on future funding shifts from conventional to nuclear is unhelpful for planning, and nuclear funding is ringfenced.
HM Treasury
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14 Conclusion Accepted
Nineteenth Report - MoD Equipment …
MoD collaborates with industry to develop a resilient and visible defence supply chain.
The Ministry of Defence (the MoD) is working with industry to develop a resilient, responsive, and cost-effective supply chain. For example, it told us that it has been working with the Defence Suppliers Forum, which covers about 80 companies directly … Read more
Government Response
The government agrees with the implied recommendation to strengthen supply chain resilience and transparency, committing to provide a clearer signal to industry on future demand through the new Integrated Procurement Model and continued publication of the Acquisition Pipeline, with a target implementation date of Spring 2025.
HM Treasury
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15 Recommendation Accepted
Nineteenth Report - MoD Equipment …
Lessons from Ukraine highlight MoD need for investment in weapon stockpiles and supply chain resilience.
Key lessons from the war in Ukraine include the need for the Armed Forces to invest in weapon stockpiles and ensure resilience and agility in sustaining military capabilities.43 The MoD has earmarked £5 billion over the decade to 2032–33 to … Read more
Government Response
The government accepted the recommendation, agreeing to provide clearer signals to industry on future demand through the new Integrated Procurement Model and existing tools like the Acquisition Pipeline, with a target implementation date of Spring 2025. It also committed to forming a new alliance with industry for long-term strategic alignment.
HM Treasury
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16 Conclusion Accepted
Nineteenth Report - MoD Equipment …
Building defence industrial skills capacity faces challenges due to high global demand.
The MoD recognises that building capacity, including the industrial skills base, will take time, and that for industry to invest in this it must have confidence that the MoD’s demand will continue.46 For example, the MoD estimates that over the … Read more
Government Response
The government agrees with the implied recommendation to build industrial capacity and skills, committing to provide a clearer signal to industry on future demand through the new Integrated Procurement Model and improved visibility of the acquisition pipeline by Spring 2025.
HM Treasury
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17 Conclusion Accepted
Nineteenth Report - MoD Equipment …
MoD shifts contracting approach, bearing more inflation risk due to volatile economic conditions.
Because of high and volatile inflation, the MoD has changed its approach to contracting with suppliers. Formerly, around 25% of contracts were ‘firm price’, whereby the supplier bore the inflation risk.51 However, the MoD said that the cost of such … Read more
Government Response
The government agrees with the implied recommendation to foster good industry relations, committing to improve visibility of long-term planning and form a new alliance with industry through the Integrated Procurement Model by Spring 2025, thereby supporting industry's ability to plan and invest.
HM Treasury
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18 Conclusion Accepted
Nineteenth Report - MoD Equipment …
MoD demonstrates long-term commitment to industry for continuous munitions production and adaptable capabilities.
The MoD has also launched some initiatives to demonstrate a long-term commitment to industry regarding future demand, including an order with BAE Systems for 155mm artillery shells.54 The MoD told us that it wanted to develop an “always-on production line … Read more
Government Response
The government agrees with the implied recommendation to demonstrate long-term commitment and guidance to industry, committing to provide a clearer signal on future demand and improve visibility of long-term planning through the new Integrated Procurement Model by Spring 2025.
HM Treasury
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19 Recommendation Accepted
Nineteenth Report - MoD Equipment …
MoD's funding shortfalls and uncommitted contracts undermine defence suppliers' confidence.
The MoD said that it tries to publish as much of its defence pipeline as it can to build supplier confidence.57 However, its failure to provide budgets that match ambition, such as the £5.9 billion funding shortfall in the shipbuilding … Read more
Government Response
The government agrees with the recommendation to build supplier confidence, committing to provide a clearer signal to industry on future demand and improve visibility of long-term planning through the new Integrated Procurement Model by Spring 2025, continuing to publish the Acquisition Pipeline twice yearly.
HM Treasury
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20 Conclusion Accepted
Nineteenth Report - MoD Equipment …
Few MoD major equipment projects are on track for successful delivery.
Only two of the 46 MoD equipment projects that are included in the Government Major Projects Portfolio (GMPP) are rated as being highly likely to be delivered to time, budget and quality (green).60 Successful delivery appears to be unachievable for … Read more
Government Response
The government agrees and will implement the Integrated Procurement Model from April 2024, aiming to drive increased pace in delivery of military capability through new services, guidance, and independent advice, with full implementation continuing through 2024-2025.
HM Treasury
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21 Conclusion Accepted
Nineteenth Report - MoD Equipment …
MoD faces significant recruitment and retention challenges for skilled project staff.
The MoD has made some progress with training senior responsible owners (SROs) and increasing the proportion of their time spent on delivering projects.64 SROs also now 52 Q 23 53 Qq 21, 23; C&AG’s Report, para 2.4 54 Qq 31, … Read more
Government Response
The government agrees and will implement the Integrated Procurement Model from April 2024, aiming to drive increased pace in delivery of military capability through new services, guidance, and independent advice, with full implementation continuing through 2024-2025.
HM Treasury
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22 Recommendation Accepted
Nineteenth Report - MoD Equipment …
External market demand for components and skills slows defence equipment delivery significantly.
Since the end of COVID-19 restrictions, there has been increased international demand for key components and skilled workers from other sectors, such as the car and commercial aviation industries.69 This has contributed to the slow delivery of defence equipment, including … Read more
Government Response
The government accepted the recommendation, stating it has introduced a new Integrated Procurement Model, announced in February 2024, to increase the pace of military capability delivery, with implementation beginning in April 2024 and continuing through 2025.
HM Treasury
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23 Conclusion Accepted
Nineteenth Report - MoD Equipment …
New Integrated Procurement Model aims for faster capability delivery to Armed Forces.
An emphasis on pace is one of five key features of the new “Integrated Procurement Model” which the Minister for Defence Procurement announced on 28 February.73 For example, the MoD plans to get new capabilities into the hands of the … Read more
Government Response
The government agrees and confirms the implementation of the Integrated Procurement Model from April 2024, designed to drive increased pace in military capability delivery through new services, guidance, and independent advice, with full implementation continuing through 2024-2025.
HM Treasury
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24 Conclusion Accepted
Nineteenth Report - MoD Equipment …
Intensive use of ageing equipment creates maintenance backlog, reducing Armed Forces capacity.
In the meantime, the intensive use of existing equipment is contributing to a maintenance backlog that will take more time and money to address, leaving the UK’s Armed Forces having to make do with fewer pieces of ageing equipment nearing … Read more
Government Response
The government agrees with the committee's implied concern regarding equipment readiness and responds by implementing a new Integrated Procurement Model from April 2024, designed to accelerate the delivery of military capability.
HM Treasury
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25 Conclusion Acknowledged
Nineteenth Report - MoD Equipment …
International developments highlight importance of strategic partnerships for interoperable defence equipment.
Recent international developments, including the war in Ukraine, have underlined the importance of strategic international partnerships for the UK.79 The UK has been working with its allies, including Ukraine, to develop interoperable equipment, pool essential munitions and encourage industry to … Read more
Government Response
The government agrees with the importance of strategic international partnerships and describes its ongoing efforts to capitalize on the UK's convening power, review allied support, and engage industry, with a target implementation date of Spring 2025.
HM Treasury
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26 Conclusion
Nineteenth Report - MoD Equipment …
Armed Forces credibility undermined by persistent recruitment and retention challenges and workforce pressures.
However, for deterrence to be effective, the UK’s Armed Forces must be credible.81 Such credibility is undermined by widely reported recruitment and retention issues, with eight people leaving the Armed Forces for every five who are recruited.82 Despite the MoD’s … Read more
HM Treasury
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27 Conclusion Accepted
Nineteenth Report - MoD Equipment …
Crew shortages and allied challenges threaten Royal Navy capacity and UK's international role.
In the meantime, the MoD is considering mothballing Royal Navy ships because of crew shortages, and the only Royal Navy ship able to fully replenish the UK’s aircraft carriers is unavailable this year because of a refit.86 With the support … Read more
Government Response
The government agrees with the implied recommendation to address capability challenges, committing to ensuring balanced capabilities, driving cooperative burden-sharing with allies, and rigorously reviewing allied support and identified risks as part of ongoing capability planning and force testing, with a target implementation date of Spring 2025.
HM Treasury
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Government Response AI assessment · 26 of 5 classified
Accepted 17
Acknowledged 2
Rejected 7
Total 5 recs + 22 conclusions
Correspondence 5 letters
11 Mar 2024 Correspondence from David Williams CB, Permanent Secretary, Ministry of Defence, re Equipment Plan 2023-2033: Hearing follow up questions, dated 6 March 2024
Parliament page
7 Mar 2024 Correspondence from David Williams CB, Permanent Secretary, Ministry of Defence, re Equipment Plan 2023 – 2033: hearing follow up questions, dated 6 March 2024
Parliament page
22 Jan 2024 Correspondence from David Williams CB, Permanent Secretary, Ministry of Defence, re Equipment Plan 2023-2033: Update on affordability, dated 12 January 2024
Parliament page
22 Jan 2024 Revised correspondence from David Williams CB, Permanent Secretary, Ministry of Defence, re Equipment Plan 2023-2033: Update on affordability, dated 4 December 2023
Parliament page
11 Dec 2023 Correspondence from David Williams CB, Permanent Secretary, Ministry of Defence, re Equipment Plan 2023 – 2033: Update on Affordability, dated 4 December 2023 (A revised version of this letter was published on 22 January 2024. Please see the Equipment Plan 2023-2033 inquiry page.)
Parliament page