Nineteenth Report - MoD Equipment Plan 2023–2033
Select Committee
Public Accounts Committee
HC 451
8 March 2024
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Nineteenth report from Session 2023-24 · published 28 May 2024
Recommendations & Conclusions
7 results
3
Conclusion
Rejected
Report trends in MoD nuclear funding and its impact on conventional capability budgets.
Conclusion
The MoD’s prioritisation of the Defence Nuclear Enterprise carries a risk that this will further squeeze budgets for conventional capabilities. Maintaining the nuclear deterrent remains the MoD’s highest defence priority. This year’s Plan is the first time that the MoD …
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Government Response Summary
The government rejected the recommendation, stating that hypothesizing about future funding shifts from conventional to nuclear budgets would be speculative and not useful for planning.
HM Treasury
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1
Conclusion
Rejected
Committee receives evidence from MoD regarding the Equipment Plan 2023–2033.
Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Ministry of Defence (the MoD) on the Equipment Plan 2023–2033 (the Plan).2
Government Response Summary
The government disagreed with an unspecified recommendation, which it interpreted as a request to set out a list of capabilities that would be cut if budget assumptions are not met, stating this would create operational security risks and undermine industry confidence.
HM Treasury
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7
Conclusion
Rejected
MoD Equipment Plan affordability contingent on uncertain 2.5% GDP defence spending pledge.
Conclusion
The MoD told us that if the government fulfils its commitment to spending 2.5% of Gross Domestic Product (GDP) each year on defence, the Plan could well be affordable.18 The current defence budget is 2.1% of GDP, which increases to …
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Government Response Summary
The government disagrees with the implied recommendation, stating the Prime Minister's commitment to 2.5% GDP by 2030 and explaining that it will not set out a list of potential capability cuts due to operational security risks.
HM Treasury
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8
Recommendation
Rejected
MoD lacks long-term budget certainty beyond March 2025, hindering equipment planning.
Recommendation
The MoD asserted that it was not a gamble to assume that its budget will increase to 2.5% of GDP.21 At present, however, the MoD has budget certainty only to the end of March 2025, which hinders its ability to …
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Government Response Summary
The government explicitly disagreed with the committee's implied recommendation for more budget certainty, stating the Prime Minister's commitment to 2.5% GDP defence spending by 2030 and detailing existing commercial policy changes. It also stated it would not set out a list of capability cuts.
HM Treasury
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11
Conclusion
Rejected
MoD prioritises swift delivery of nuclear programmes to de-risk and limit long-term costs.
Conclusion
Maintaining the nuclear deterrent remains the MoD’s highest defence priority. This year’s Plan is the first time that the MoD has set out its nuclear budget separately from other defence spending.35 The MoD has sought to de-risk and limit the …
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Government Response Summary
The government rejects the committee's observation regarding the nuclear budget, stating that speculating on future funding shifts from conventional to nuclear is unhelpful for planning, and nuclear funding is ringfenced.
HM Treasury
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12
Conclusion
Rejected
MoD nuclear programmes are healthier but future funding requests for HM Treasury remain possible.
Conclusion
The MoD said that its nuclear programmes are in a much healthier position than for many years.37 The MoD has agreed a minimum 10-year budget with HM Treasury for its nuclear activities of £109.8 billion, and it said that the …
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Government Response Summary
The government rejects the committee's observation regarding the nuclear budget, stating that speculating on future funding shifts from conventional to nuclear is unhelpful for planning, and nuclear funding is ringfenced.
HM Treasury
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13
Conclusion
Rejected
Prioritising nuclear programmes risks squeezing conventional capability budgets, a recognised funding challenge.
Conclusion
The MoD’s prioritisation of the nuclear enterprise carries a risk that this will further squeeze budgets for conventional capabilities, because if additional money is not forthcoming, the MoD has the flexibility to redirect money from its conventional equipment budgets to …
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Government Response Summary
The government rejects the committee's observation regarding the nuclear budget, stating that speculating on future funding shifts from conventional to nuclear is unhelpful for planning, and nuclear funding is ringfenced.
HM Treasury
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