32nd Report - The Future of the Equipment Plan
Select Committee
Public Accounts Committee
HC 716
20 June 2025
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Thirty-second report from Session 2024-26 · published 16 Sep 2025
Recommendations & Conclusions
5 results
6
Conclusion
Rejected
Provide Parliament with annual Defence Nuclear Enterprise costs, budget proportion, and variance explanations.
Conclusion
The ever-increasing cost of the Defence Nuclear Enterprise (the DNE) is likely to add pressure on the Department’s overall budgets. In 2024–25 the nuclear budget was £10.9 billion, around 18% of the whole defence budget (unchanged as a percentage from …
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Government Response Summary
The government rejected the recommendation, stating that the annual update to Parliament is not the appropriate vehicle for detailed DNE financial reporting, as this information is already provided through wider MOD financial reports and the Parliamentary Estimates process.
HM Treasury
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30
Conclusion
Rejected
Department of Defence highlights nuclear budget importance and efforts to improve management.
Conclusion
The Department said the UK’s status as a nuclear nation is crucial for keeping the country safe.64 In 2024–25 the nuclear budget was £10.9 billion, around 18% of the whole defence budget (up from £9.433 billion in 2023–2465). The Department …
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Government Response Summary
The government rejects the committee's implicit recommendation for specific DNE financial reporting, stating that DNE financial information is already provided through existing parliamentary processes and will be included in the Defence Investment Plan.
HM Treasury
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31
Conclusion
Rejected
Defence Nuclear Enterprise costs show significant increases, exceeding previous forecasts and budget allocations.
Conclusion
However, costs of the DNE are rising, driven by various factors.69 The Department is seeking to quicken the pace of delivering its nuclear programmes. The Department noted, however, that there is a very strong correlation between speeding up the schedule …
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Government Response Summary
The government rejects the implicit recommendation for separate reporting, stating that DNE financial information is already provided through broader MOD financial reporting, Annual Report and Accounts, and the Defence Investment Plan.
HM Treasury
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32
Conclusion
Rejected
Ringfenced nuclear budget creates unresolved questions about balancing investment with conventional capabilities.
Conclusion
The prioritisation of the DNE has led to government creating a ringfence which prevents the Department from using elsewhere money allocated to delivering the DNE, but which allows money to flow the other way.73 The Department recognises that one of …
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Government Response Summary
The government rejects the committee's implicit recommendation for specific DNE financial reporting, stating that DNE financial information is already provided through existing parliamentary processes and will be included in the Defence Investment Plan.
HM Treasury
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33
Conclusion
Rejected
Rising nuclear costs may restrict funding for critical non-nuclear defence needs, like military accommodation.
Conclusion
The increase in nuclear costs may restrict the money available for other important needs.76 For example, improving poor accommodation is crucial in addressing the military’s recruitment and retention problems.77 The Department recognises that this is an area where there has …
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Government Response Summary
The government rejects the implicit recommendation, stating that detailed DNE financial reporting is already provided through wider MOD financial reporting and other existing documents, to avoid inconsistency.
HM Treasury
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