13
Accepted
The Department told us that, thanks to the funding increase in the Spending Review and...
Conclusion
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 us that it had a clearer strategy than before, with a Plan whose cost is less over 10 years than its budget.28 It acknowledged that agreeing the Plan had involved difficult decisions, for example to retire some in-service equipment and decisions on profile and timing of replacement projects. The Department’s Permanent Secretary noted that if the Department is to maintain the affordability of the Plan in the future “that kind of discipline needs to be not just a one-off in the integrated review but how we conduct ourselves year in, year out”.29
Government Response Summary
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.
Government Response
Accepted
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.
Source
Committee
Public Accounts Committee
Inquiry
MoD Equipment Plan 2021-31
Report
Fifty-Second Report - Ministry of Defence Equipment Plan 2021–31
11 May 2022
HC 1164
Addressee Bodies
HM Treasury
Timeline
Recommendation age
4.2 yrs
Report published
11 May 2022