21
The Department acknowledged that inflation also makes it difficult for suppliers to deliver due to...
Conclusion
The Department acknowledged that inflation also makes it difficult for suppliers to deliver due to rising staff and material costs.55 As a result, the Department is changing its contractual approach to take account of the inflation risk and avoid suppliers charging a higher premium for continuing to take this risk on.56 47 Q 95 48 C&AG’s Report, para 2.14; Ministry of Defence, The Defence Equipment Plan 2022–2032, P11 49 Q 88 50 Q 89, C&AG’s Report, para 1.15 51 Q 86 52 Qq 79, 81 53 Q 51 54 Q 112 55 Q 52; C&AG’s Report, para 2.13 56 Q 88 14 MoD Equipment Plan 2022–2032
Government Response
A response document is linked to this report, dated 21 July 2023. Response attribution to this conclusion has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Inquiry
MoD Equipment Plan 2022-2032
Report
Forty-Eighth Report - MoD Equipment Plan 2022–2032
19 Apr 2023
HC 731
Addressee Bodies
HM Treasury
Timeline
Recommendation age
3.4 yrs
Report published
19 Apr 2023