7 Accepted

Cost increases or cuts to funding on the Department’s programmes can have a profound impact...

Conclusion
Cost increases or cuts to funding on the Department’s programmes can have a profound impact on the level of military capability that can be achieved. For example, it is procuring considerably fewer Ajax armoured vehicles and Challenger 3 tanks than it identified it needed in earlier assessments, as well as fewer P-8A maritime patrol aircraft and Type 26 frigates. In addition, delaying the entry into service of new capabilities can 7 C&AG’s report, para 3.7 and Figure 6 8 Committee of Public Accounts, Defence capability and Equipment Plan, Tenth Report of Session 2019–21, 1 July
Government Response Summary
The government disagrees with the Committee's conclusion regarding the impact of cost increases on military capability, asserting new funding will address threats. It commits to providing further detail and a breakdown of this £16.5 billion in an upcoming equipment plan report for publication in February 2022.
Government Response
Accepted
HM Government Accepted
6.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2022 6.2 Although the department agrees with the Committee’s recommendation, it does not agree with the Committee’s conclusion. The £16.5 billion extra funding from Spending Review 2020 will support the aims and priorities outlined in the Integrated Review to better counter developing and future threats. Further detail and a breakdown of the £16.5 billion will be provided in the upcoming equipment plan report for publication in February 2022, with a clear distinction between investment in new capabilities and managing the existing shortfall reported in our previous updates. As usual, this will be published alongside the NAO report. 6.3 Recognising the time taken to compile this significant edition of the Equipment Plan, the department has provided updates to the Committee following the publication of the Defence Command Paper in March 2021. The department wrote to the Committee on 22 June with detail of the investments and savings taken through the Integrated Review. The department wrote again to the Committee on 14 September 2021 in response to the Committee’s report on equipment contracts and set out more detail on the new capabilities which will cover.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 4.7 yrs
Report published 03 Nov 2021