Fifty-Second Report - Ministry of Defence Equipment Plan 2021–31

Select Committee
Public Accounts Committee HC 1164 11 May 2022
Report Status Government responded
Conclusions & Recommendations 33 items (11 recs)
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Government Response (AI assessment · 33 of 33 classified)
Accepted 10
Acknowledged 18
Not Addressed 4
Rejected 1
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Fifty Second report from Session 2021-22 · published 2 Sep 2022
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Recommendations & Conclusions

10 results
3 Recommendation Accepted
The Plan’s affordability relies on the Department achieving a number of different types of savings,...
Recommendation
The Plan’s affordability relies on the Department achieving a number of different types of savings, including £7 billion of ‘cost reductions’ by 2031. The Top Level Budgets (TLBs) do not yet have plans to achieve £4 billion of the ‘cost … Read more
Government Response Summary
TLBs have targets and plans to achieve these savings, closely monitors and scrutinises Top Level Budget (TLB) planned cost reductions in the annual budget cycle, and considers that the savings are achievable.
HM Treasury
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10 Conclusion Accepted
An example of new funding for more established programmes is the new radar for the...
Conclusion
An example of new funding for more established programmes is the new radar for the Typhoon. Although it had been in development for several years before the decision to buy it was announced in 2015, the Department did not include … Read more
Government Response Summary
The government agrees with the committee's conclusion, stating that future Equipment Plans will include an additional section explaining changes made and planned to address emerging developments, recognizing the need to balance competing priorities.
HM Treasury
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11 Recommendation Accepted
More widely, the Committee asked whether the Plan was now based on a large number...
Recommendation
More widely, the Committee asked whether the Plan was now based on a large number of past assumptions, observing that it does not include funding for capabilities 7 Q2 8 Q8 9 Q86 10 Qq 7–8 11 Q88 12 Q64 … Read more
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.
HM Treasury
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12 Recommendation 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 … Read more
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.
HM Treasury
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13 Conclusion 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 … Read more
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.
HM Treasury
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14 Conclusion Accepted
This is the first time the Department has claimed the Plan is affordable for four...
Conclusion
This is the first time the Department has claimed the Plan is affordable for four years. And given the NAO has repeatedly reported on the Department’s focus on short term affordability at the expense of long-term value for money, we … Read more
Government Response Summary
The government agrees and recognizes the impact of the conflict in Ukraine on equipment spending, stating this is being examined. It commits that future Equipment Plans will include an additional section explaining changes made and planned to address emerging developments.
HM Treasury
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15 Recommendation Accepted
We asked why the Department is forecasting to spend more than its capital budget in...
Recommendation
We asked why the Department is forecasting to spend more than its capital budget in seven of the next 10 years. The Department responded that the differences in those years were quite small and it judged them to be manageable.32 … Read more
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.
HM Treasury
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19 Conclusion Accepted
The Plan’s affordability depends on the Department achieving a number of different types of savings...
Conclusion
The Plan’s affordability depends on the Department achieving a number of different types of savings by March 2031. As the NAO reported, these amount to nearly £22 billion, which comprises around £12 billion of ‘management adjustments for realism’, £7 billion … Read more
Government Response Summary
The government agrees with the Committee’s recommendation and says that TLBs have targets and plans to achieve these savings, and the department closely monitors and scrutinises Top Level Budget (TLB) planned cost reductions in the annual budget cycle.
HM Treasury
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20 Recommendation Accepted
Pressed on the £4 billion for which there are no plans yet, the Department explained...
Recommendation
Pressed on the £4 billion for which there are no plans yet, the Department explained that the target is based on an assumption of what the TLBs can deliver. The Department told us that Head Office scrutinises about 80 of … Read more
Government Response Summary
The government agrees with the Committee’s recommendation, stating that it has been implemented, and TLBs have targets and plans to achieve these savings. The department closely monitors and scrutinises Top Level Budget (TLB) planned cost reductions in the annual budget cycle and will include further information on TLB cost reductions in the upcoming Equipment Plan 2022 due to be published in Autumn 2022.
HM Treasury
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21 Conclusion Accepted
We noted that £2.6 billion of the £4 billion savings—two thirds of the total—needs to...
Conclusion
We noted that £2.6 billion of the £4 billion savings—two thirds of the total—needs to be achieved by March 2025. This is despite the fact that contractual commitments limit TLBs’ flexibility to make savings, for example 62% of Air Command’s … Read more
Government Response Summary
TLBs have targets and plans to achieve these savings, closely monitors and scrutinises Top Level Budget (TLB) planned cost reductions in the annual budget cycle, and considers that the savings are achievable.
HM Treasury
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