12 Accepted

However, the NAO report found that in the Plan the Department has only set aside...

Recommendation
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 the Department believes the boundary between R&D and exploitation is blurred. The Department also agreed that the cyber threat is changing very rapidly and accepts that this makes it hard to be certain that the money in the Plan to protect against this threat will be enough.25 The Department also acknowledged that its procurement approach does not adequately reflect the notion that “if you want to do something cheaply, you need to do it quickly”.26 22 Q144 23 Q144 24 C&AG’s report, para 2.27 25 Qq 92–93 26 Q31 Ministry of Defence Equipment Plan 2021–31 11 2 The Plan’s affordability
Government Response Summary
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.
Government Response
Accepted
HM Government Accepted
1.1 The department agrees with the Committee’s recommendation. Target implementation date: Autumn 2022 1.2 The Ministry of Defence (the department) recognises the potential impact the conflict in Ukraine has had for future thinking on equipment spending and procurement and this is being examined. The department remains confident that the Equipment Plan 2021-2031 (EP21) retains relevance despite emerging and unpredicted threats and was produced in line with aims and priorities outlined in the Integrated Review. 1.3 The Equipment Plan has to balance competing priorities, but, it is the department’s view that the EP21 successfully addressed and rectified a previous deficit, whilst ensuring increased investment in new capabilities and research or development. The Plan therefore balances short term need and long term aims to ensure it is remains resilient to emerging threats. 1.4 Future Equipment Plans will include an additional section explaining changes made and planned to address emerging developments.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 4.2 yrs
Report published 11 May 2022