Menu
Fri, 29 March 2024

Newsletter sign-up

Subscribe now
The House Live All
Defence
By Baroness Fox
Home affairs
Historic wins, inspiring moments and British success: MPs share what they’re looking forward at the Paris Olympics Partner content
Communities
Veterans falling victim to plague of process  Partner content
Communities
Delivering deployable AI: A must-do for UK defence Partner content
By Thales UK
Defence
Press releases
By BAE Systems Plc

Defence chiefs slammed by MPs for ‘woeful’ progress on closing multi-billion pound black hole

2 min read

Defence bosses have been criticised by MPs for their “woeful” failure to close a multi-billion pound funding gap in their equipment budget.


The Public Accounts Committee, which scrutinises government spending, says the department is the Ministry of Defence is "failing taxpayers" because of its poor financial planning.

The criticism comes in a report on ministers’ 10-year plan to spend more than £180bn on new warships, submarines, jets and armoured vehicles.

However the committee said the plan remained “unaffordable” as they took aim at the department for failing to heed warnings it made in May last year.

It estimates an affordability gap of £7bn in the plan across over the next decade, which could even soar to nearly £15bn.

The committee adds that failing to address the problem risks reducing the confidence that industry needs to invest in the equipment and support required by the Armed Forces.

Elsewhere the MPs dismissed the MoD’s assumption that “it will achieve significant efficiency savings” of £13bn during the period, given it lacks “a coherent and credible plan for monitoring or delivering them”.

They also criticised the Treasury for “hindering” the long-term plan by requiring departments to work to annual budgets.

Committee chair Meg Hillier MP said: “The MoD simply cannot afford everything it says it needs and it is not acceptable for officials to continue deferring decisions that have a bearing on its current affordability gap and longer-term risks.

“A department that is unwilling or unable to take the action required to help it live within its means is failing taxpayers, who rightly expect Government to deliver the best possible value for their money.

“We urge the MoD to act on our recommendations now, work with the Treasury to ensure its funding and planning models are fit for purpose, and bring some much-needed clarity to its priorities and costs.”

A spokesman for the Ministry of Defence said: "We are confident that we will deliver the equipment plan within budget this year, as we did last year, as we strive to ensure our military have the very best ships, aircraft and vehicles."

PoliticsHome Newsletters

PoliticsHome provides the most comprehensive coverage of UK politics anywhere on the web, offering high quality original reporting and analysis: Subscribe

Read the most recent article written by Nicholas Mairs - Public sector workers to get 5% pay rise from April if Labour wins election

Categories

Defence Home affairs
Podcast
Engineering a Better World

The Engineering a Better World podcast series from The House magazine and the IET is back for series two! New host Jonn Elledge discusses with parliamentarians and industry experts how technology and engineering can provide policy solutions to our changing world.

NEW SERIES - Listen now