Recommendations & Conclusions
22 items
2
Conclusion
43rd Report - MoD’s oversight of Reserv…
Accepted
The government’s plans to increase the number of cadets by 30% by 2030 face several significant barriers. There are potentially great benefits for young people in expanding the cadet forces, which will mean increasing both the size and number of cadet units. Cadet forces can enhance social mobility and give …
Government response. The government agrees, but states that Defence Statistics already produces data on volunteer numbers, units, and regional breakdowns, and the joint MOD/DfE Cadet Expansion Project provides data on Combined Cadet Force units. It does not commit to developing the specific …
HM Treasury
3
Conclusion
43rd Report - MoD’s oversight of Reserv…
Accepted
The Department has not secured the legislative slot it needs for its preferred route forward, of streamlining the 13 RFCAs and the Council into a non-departmental public body (NDPB). Creating an NDPB requires legislation. However, the Department’s earlier plan to rationalise the RFCAs into an NDPB, which would simplify back-office …
Government response. The government agrees, stating the NDPB proposal is being developed for potential inclusion in the 2026 Armed Forces Bill, with work continuing to ensure local volunteer input is embedded. The department commits to providing updates on this progress as requested …
HM Treasury
4
Conclusion
43rd Report - MoD’s oversight of Reserv…
Accepted
The Department will need to continue to manage around the limitations of its current oversight arrangements for the RFCAs until it has established an NDPB. The Department has improved its oversight of the RFCAs since 2019, implementing around 70% of the Sullivan Review’s recommendations either fully or partially. It now …
Government response. The government agrees, outlining that performance monitoring has been sharpened, KPIs established, a sponsor appointed, and an updated financial framework agreed to enhance accountability under current arrangements. It commits to providing updates on this progress as requested by the Committee.
HM Treasury
5
Conclusion
43rd Report - MoD’s oversight of Reserv…
Accepted
The Department does not have a modernised and fit-for-purpose volunteer estate to support the enhanced roles of the reserves and cadets. The reserve training sites are the basis for mobilising the reserves, while having accommodation for thousands of cadet units to operate across the UK provides an important, nationwide presence. …
Government response. The government agrees and commits to providing updates on its progress with discussions with HMRC, which will consider the case and provide guidance on recovering VAT incurred on maintaining the volunteer estate.
HM Treasury
6
Conclusion
43rd Report - MoD’s oversight of Reserv…
Accepted
The Department’s arrangements for monitoring and reporting on the RFCAs’ financial performance are inadequate. The RFCAs’ accounts have been produced very late in recent years. The Department published the RFCAs accounts for 2020–21, 2021–22 and 2022–23 together, in October 2024, which means that some information about the Council and the …
Government response. The government agrees, stating it has already funded a professionally qualified Finance Director and agreed a Treasury-compliant financial framework. The department commits to working closely with RFCAs to ensure full compliance with public financial requirements and will provide updates on …
HM Treasury
1
Conclusion
43rd Report - MoD’s oversight of Reserv…
Accepted
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Ministry of Defence (the Department) and the Council of Reserve Forces’ and Cadets’ Associations (the Council) on their oversight and support of the Reserve Forces’ and Cadets’ Associations (RFCAs).1
Government response. The government agrees, stating it is planning to introduce legislative measures in the next Armed Forces Bill to remove barriers to reserve service and increase Active Reserves. It also commits to planning the reinvigoration of the Strategic Reserve, including scoping …
HM Treasury
7
Recommendation
43rd Report - MoD’s oversight of Reserv…
Accepted
The Department said that the needs of the reserves would be considered in the defence investment plan it would be developing over the summer of 2025, which would confirm the sequencing of the priorities identified in the SDR. However, the Department recognised that it needed to make some investments in …
Government response. The MOD ensures due consideration is given to the volunteer estate in its balance of investment decisions through a structured, evidence-based approach. Funding decisions are prioritised according to impact.
HM Treasury
8
Recommendation
43rd Report - MoD’s oversight of Reserv…
Accepted
The Department said that engaging with society and employers was essential. Effective engagement with employers, building on the RFCAs’ Defence Relationship Management function and securing employers’ support for their staff to be involved in the reserves, will be important for the Department achieving its ambitions.11 The Department emphasised the huge …
Government response. The Department must set out by 31 March 2026 its plan for how it will significantly enhance the skills, scale and agility of both the Active and the Strategic Reserves and provide Parliament with regular updates on its progress in …
HM Treasury
10
Recommendation
43rd Report - MoD’s oversight of Reserv…
Accepted
As of 1 April 2024, there were approximately 3,500 cadet units across the UK and 139,960 cadets. Of these, 88,600 cadets were in community units, supported by 22,340 adult volunteers, and 51,360 in the school- based Combined Cadet Force, supported by 4,320 adult volunteers. The Department welcomed the ambition set …
Government response. The Department will develop a plan by June 2026 for increasing the number of Cadets which sets out how it will ensure that young people from different backgrounds and all parts of the UK can join, address barriers to expansion …
HM Treasury
12
Recommendation
43rd Report - MoD’s oversight of Reserv…
Accepted
The Department highlighted the success of the Cadet Expansion Programme which had already increased cadet force numbers in schools. The Department said that this had led to a real democratisation of the cadet movement. It reported that 57% of the school-based cadet units now came from the state sector, whereas …
Government response. The development of a programme plan for the growth in Cadet numbers is well underway and a Director level Senior Responsible Officer has been appointed. Work is in train within the department to determine the key target areas for growth …
HM Treasury
13
Recommendation
43rd Report - MoD’s oversight of Reserv…
Accepted
The Council explained that each of the armed forces would decide how to accommodate more cadets, through a combination of increasing the size and number of cadet units. The RFCAs would then support the chosen approach.18 The Department said that there was no lack of interest in young people wanting …
Government response. The government agrees to develop a plan by June 2026 for increasing the number of Cadets, ensuring accessibility for diverse backgrounds and regions, addressing barriers like volunteer shortages, and maintaining robust safeguarding arrangements. A programme plan is underway with regular …
HM Treasury
14
Recommendation
43rd Report - MoD’s oversight of Reserv…
Accepted
The Department said that it is working with the Department for Education to develop the new science, technology, engineering and mathematics (STEM) capabilities, such as drone flying and cyber, which cadets need. This would support the UK’s wider STEM agenda.21 The Department told us that the Cadet Expansion Programme was …
Government response. The government agrees to develop a plan by June 2026 for increasing the number of Cadets, ensuring accessibility for diverse backgrounds and regions, addressing barriers like volunteer shortages, and maintaining robust safeguarding arrangements. A programme plan is underway with regular …
HM Treasury
18
Recommendation
43rd Report - MoD’s oversight of Reserv…
Accepted
The Department said it is now at an ‘inflection point’ where the governance and oversight of the RFCAs needs to be fit for purpose to support the ambitions in the SDR. In part, the Department intends to achieve this through its desired creation of an NDPB. It explained that other …
Government response. The Department will write to the Committee by 31 March 2026 with an update on its progress in establishing an NDPB, including details of how it will ensure the correct balance between the operational effectiveness of the NDPB with the …
HM Treasury
19
Recommendation
43rd Report - MoD’s oversight of Reserv…
Accepted
The Department said that its oversight of the RFCAs had improved since the publication of the Sullivan Review in 2019, and that it had fully or partially implemented around 70% of the Review’s 80 recommendations. It now has a single senior responsible owner, the Assistant Chief of the Defence Staff …
Government response. The government agrees to write to the Committee setting out how it will enhance accountability for the performance of the RFCAs under the current arrangements, pending the establishment of an NDPB. Performance monitoring has been sharpened through Service Level Agreements …
HM Treasury
20
Recommendation
43rd Report - MoD’s oversight of Reserv…
Accepted
In recent years the Department has improved the quality of the five service level agreements (SLAs) that it has with the Council, which set out what the armed forces and Department require the RFCAs to deliver each year. The Department reviews progress against the SLAs three times a year, and …
Government response. Accountability for the RFCAs has been enhanced since the 2019 Sullivan Review and performance monitoring has been sharpened, the MOD appointed a single departmental sponsor, service level agreements have been refreshed to include clearer KPIs, and the Senior Team regularly …
HM Treasury
21
Recommendation
43rd Report - MoD’s oversight of Reserv…
Accepted
Stewardship of the volunteer estate is one of the RFCAs’ core activities. The volunteer estate, which provides the essential infrastructure that the cadets and reserves need to operate, is made up of around 2,500 sites which are widely dispersed around the UK and range from cadet huts to multipurpose reserve …
Government response. The Department will write to the Committee alongside its Treasury Minute response, setting out how it will enhance accountability for the performance of the RFCAs under the current arrangements, pending the establishment of an NDPB.
HM Treasury
22
Recommendation
43rd Report - MoD’s oversight of Reserv…
Accepted
The Department said that the volunteer estate was a critical enabler for it to deliver the ambitions for increasing the numbers of reserves and cadets set out in the SDR. However, the Department told us that the estate had been in a state of managed decline, and that it had …
Government response. The MOD ensures due consideration is given to the volunteer estate in its balance of investment decisions and will write to the Committee alongside its Treasury Minute response, regarding progress on its discussions with HMRC relating to the RFCAs’ VAT …
HM Treasury
23
Recommendation
43rd Report - MoD’s oversight of Reserv…
Accepted
The Department has planned two further phases of the estate optimisation programme. It envisages these will consolidate some sites, establishing multidisciplinary super reserve centres with additional facilities such as car parking, accommodation and feeding facilities.34 However, the Department has not yet secured funding for these phases of the programme, and …
Government response. The government agrees to ensure due consideration is given to the volunteer estate in its investment decisions as it develops its defence investment plan by Autumn 2025. It will assess the volunteer estate alongside the wider defence estate using criteria …
HM Treasury
24
Recommendation
43rd Report - MoD’s oversight of Reserv…
Accepted
Since August 2024, the maintenance and repair of the volunteer estate has been brought under the Department-wide Future Defence Infrastructure Services (FDIS) estate maintenance contract; previously, each RFCA had delivered these services through local contracts. This was intended to improve compliance, management information and supplier performance monitoring for the estate.36 …
Government response. The government agrees to ensure due consideration is given to the volunteer estate in its investment decisions as it develops its defence investment plan by Autumn 2025. It will assess the volunteer estate alongside the wider defence estate using criteria …
HM Treasury
25
Recommendation
43rd Report - MoD’s oversight of Reserv…
Accepted
The Department had not anticipated that the RFCAs would be liable to pay VAT on work done through the FDIS contract, which has resulted in the RFCAs having had less money available for maintenance than expected. The Department explained that the crux of the issue was ownership of the estate …
Government response. The Department submitted a formal submission to HMRC on 1 December 2025 to consider the case and provide further opinion and guidance on what evidence or actions are necessary to be able to recover VAT incurred by MOD on maintaining …
HM Treasury
27
Recommendation
43rd Report - MoD’s oversight of Reserv…
Accepted
Some of the RFCAs’ financial reporting has not complied with HM Treasury guidance and International Financial Reporting Standards. For example, the RFCAs’ accounts have not included a cash flow statement, nor have they correctly disclosed a defined benefit pension scheme for employees. Non-compliance with these rules has created an inconsistency …
Government response. The department is committed to supporting the RFCAs and ensuring that they meet the required financial standards and has already funded a professionally qualified Finance Director as recommended in the 2019 review and will work closely with the RFCAs to …
HM Treasury
28
Recommendation
43rd Report - MoD’s oversight of Reserv…
Accepted
The Department told us that over the last two years it had strengthened its financial oversight of the RFCAs and that monthly conversations between finance teams meant that it understood performance and risks.45 However, the Department did not have an overall financial framework for the RFCAs which complied with HM …
Government response. The Department implemented this recommendation on 18 August 2025.
HM Treasury