Value for Money
The Equipment Plan 2019 to 2029
Published 27 February 2020
6 recommendations
Ministry of Defence
Commercial and financial managementDefence and national securityEfficiency and savingsFinancial sustainabilityMilitary equipment, logistics and technologyProcurement and contract managementRisk and resilienceRisk management
nao.org.uk
This study assesses the financial assumptions underlying the Ministry of Defence’s 10-year Equipment Plan.
Recommendations (6)
Source: NAO Recommendations Tracker
Ministry of Defence
Rec 1
Accepted
Work in Progress
The Department should improve consistency of judgements by embedding a common methodology for adjustments to the budget and cost forecasts. The methodology should be capable of being tailored to individual TLBs but be based on consistent principles and an analytical, evidence-based approach.
Ministry of Defence
Rec 2
Accepted
No Longer Relevant
Head Office should undertake further analysis of the main adjustments to establish how to improve their reliability; for example, the risk of double-counting or the relationship between different adjustments.
Ministry of Defence
Rec 3
Accepted
Work in Progress
The Department should provide a fuller reconciliation of the affordability assessment in its report to compare against the previous year. This would enable readers to understand the basis of the current assessment and main movements.
Ministry of Defence
Rec 4
Accepted
Implemented
Head Office should strengthen the process for producing the Plan, given the amount of data needed to compile the Plan, the number of people involved across the TLBs and the need for manual input. It should establish a new financial control framework which clearly sets out the risks, controls and responsibilities.
Ministry of Defence
Rec 5
Accepted
No Longer Relevant
The Department should now focus on filling the gaps in key financial positions across TLBs. Improving financial capabilities across the Department is fundamental to achieving the required improvements to processes and methodology for producing the Plan.
Ministry of Defence
Rec 6
Accepted
Implemented
The Department should draw on its detailed assessment of options for Spending Round 2019 to maintain a prioritised cross-Department view on future military capabilities. It should estimate potential development costs of new projects to better inform decisions to delay, defer or de-scope existing projects. It should also ensure TLBs carry out holistic assessments of their priorities for equipment, infrastructure and other areas of spending. It then needs to use the Equipment Plan as it was originally intended – to manage its investment programme over a 10-year period.