Recommendations & Conclusions
5 items
6
Conclusion
32nd Report - The Future of the Equipme…
Rejected
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 2023–24 figures). The Department has sought to ensure that it …
Government response. 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
30
Conclusion
32nd Report - The Future of the Equipme…
Rejected
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 said it was focused on delivering its nuclear programmes effectively …
Government response. 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
31
Conclusion
32nd Report - The Future of the Equipme…
Rejected
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 and costs, because many of the costs are workforce related. …
Government response. 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
32
Conclusion
32nd Report - The Future of the Equipme…
Rejected
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 the big capability questions it must answer through the SDR …
Government response. 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
33
Conclusion
32nd Report - The Future of the Equipme…
Rejected
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 been sustained under-investment for many years, and it will take …
Government response. 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