Select Committee · Public Accounts Committee

Ministry of Defence Annual Report and Accounts 2024-25

Status: Open Opened: 6 Feb 2026 2 recommendations 24 conclusions 1 report

In November 2025, the National Audit Office’s Comptroller & Auditor General (C&AG) published his qualified opinion on the Ministry of Defence’s (MOD) Accounts 2024-25. This identified a value of £1.5bn in legacy projects carried out by the Atomic Weapons Establishment, which helps deliver the UK’s nuclear deterrent, the value of which had remained unchanged for … Show more

Reports

1 report
Title HC No. Published Items Response
5th Report - MoD follow-up Spring 2026 HC 95 7 Jun 2026 26 Pending

Recommendations & Conclusions

26 items
2 Recommendation 5th Report - MoD follow-up Spring 2026

It is completely unacceptable that the Department failed to maintain accounting records to support more...

It is completely unacceptable that the Department failed to maintain accounting records to support more than £6 billion of assets included in its 2024–25 Annual Report and Accounts. The Comptroller and Auditor General concluded that the Department’s 2024–25 accounts did not provide a true and fair representation of its financial … Read more

HM Treasury
3 Recommendation 5th Report - MoD follow-up Spring 2026

The Department is not currently providing Parliament with sufficient transparency over its ever-increasing nuclear expenditure.

The Department is not currently providing Parliament with sufficient transparency over its ever-increasing nuclear expenditure. In 2024–25, the Department spent 18% (£10.9 billion) of the defence budget on the Defence Nuclear Enterprise (DNE), a figure expected to rise to 20% for 2025–26, once its accounts have been finalised. The Department … Read more

HM Treasury
4 Conclusion 5th Report - MoD follow-up Spring 2026

The Department’s delay in publishing the Defence Investment Plan risks weakening the UK’s defence industrial...

The Department’s delay in publishing the Defence Investment Plan risks weakening the UK’s defence industrial base. The Department currently spends 85% of its budget in the UK, a proportion that it hopes to maintain or expand as defence spending increases. This amount of spending means that the Department can be … Read more

HM Treasury
5 Conclusion 5th Report - MoD follow-up Spring 2026

The Department is placing unrealistic expectations on how soldiers operate Ajax vehicles safely when it...

The Department is placing unrealistic expectations on how soldiers operate Ajax vehicles safely when it has still not resolved the underlying noise and vibration issues. In November 2025 Exercise TITAN STORM was stopped when 33 soldiers reported symptoms from noise and vibration after operating in Ajax armoured vehicles. Five soldiers … Read more

HM Treasury
6 Conclusion 5th Report - MoD follow-up Spring 2026

The Department does not know whether a recent improvement in recruitment and retention is a...

The Department does not know whether a recent improvement in recruitment and retention is a result of changes it has made, or whether it can sustain these improved trends. After many difficult years for both recruitment and retention, the latest public statistics for the year to October 2025 point to … Read more

HM Treasury
7 Conclusion 5th Report - MoD follow-up Spring 2026

The Comptroller and Auditor General also qualified the Department’s 2024–25 accounts because of a regularity...

The Comptroller and Auditor General also qualified the Department’s 2024–25 accounts because of a regularity issue.15 This related to provisions to cover probable compensation and legal costs associated with personal injury claims, and probable costs and compensation associated with Afghan resettlement schemes.16 The Department needed to make a prior-year adjustment … Read more

HM Treasury
8 Conclusion 5th Report - MoD follow-up Spring 2026

The Department repeatedly emphasised that it was a large and complex organisation.19 Controls that are...

The Department repeatedly emphasised that it was a large and complex organisation.19 Controls that are working one year may be less effective the following year. Because of this, the Department said that it constantly tests its controls and processes to ensure that they are working as planned. The Department said … Read more

HM Treasury
9 Conclusion 5th Report - MoD follow-up Spring 2026

The Defence Nuclear Enterprise (DNE) has a ring-fenced budget comprising the Defence Nuclear Organisation, including...

The Defence Nuclear Enterprise (DNE) has a ring-fenced budget comprising the Defence Nuclear Organisation, including the Submarine Delivery Agency and the Atomic Weapons Establishment, and the nuclear-related costs of parts of the Military Strategic Headquarters, particularly the Royal Navy.21 In 2024–25, the Department spent £10.9 billion on the DNE, which … Read more

HM Treasury
10 Conclusion 5th Report - MoD follow-up Spring 2026

The DNE is a large, complicated portfolio, to which new programmes are added and others...

The DNE is a large, complicated portfolio, to which new programmes are added and others are growing. The Department said that it was re- establishing its capability to produce nuclear fuel, and that there have been changes in the scope of the DNE portfolio, for example as a result of … Read more

HM Treasury
11 Conclusion 5th Report - MoD follow-up Spring 2026

The Department said that nine DNE programmes have whole-life costs of more than £10 billion,...

The Department said that nine DNE programmes have whole-life costs of more than £10 billion, including three submarine programmes, maintaining the existing warhead and designing its replacement, and building complex infrastructure facilities at three sites.25 The Department stated that the cost of Dreadnought, which is due to enter service in … Read more

HM Treasury
12 Conclusion 5th Report - MoD follow-up Spring 2026

The 2025 Strategic Defence Review identified this gap in scrutiny of the DNE and recommended...

The 2025 Strategic Defence Review identified this gap in scrutiny of the DNE and recommended that Government should develop mechanisms for enhanced Parliamentary oversight. This would help to sustain public support for the nuclear deterrent, ensure stability in delivering the portfolio and provide confidence that taxpayer money is being spent … Read more

HM Treasury
13 Conclusion 5th Report - MoD follow-up Spring 2026

The Department told us that the whole point of the Defence Investment Plan (DIP) was...

The Department told us that the whole point of the Defence Investment Plan (DIP) was to provide genuinely long-term demand signals so that industry, both large and small companies, can invest in preparation. It said that this was vital to foster a better investment climate, attract companies into the UK, … Read more

HM Treasury
14 Conclusion 5th Report - MoD follow-up Spring 2026

The Department is a key customer for the defence industry, and it currently spends 85%...

The Department is a key customer for the defence industry, and it currently spends 85% of its budget in the UK, a proportion that it hopes to maintain or expand as defence spending increases. It said that this amount of expenditure means it can be an important element of the … Read more

HM Treasury
15 Conclusion 5th Report - MoD follow-up Spring 2026

The Department’s goal is not just to stimulate the domestic market, but also to help...

The Department’s goal is not just to stimulate the domestic market, but also to help UK industry benefit from the expanding international market for defence equipment. The Department has established an export team designed to ensure that it buys equipment which is not just suitable for the UK’s Armed Forces, … Read more

HM Treasury
16 Conclusion 5th Report - MoD follow-up Spring 2026

The UK’s ongoing support for Ukraine underlines the UK defence industry’s potential for swift action...

The UK’s ongoing support for Ukraine underlines the UK defence industry’s potential for swift action and technological innovation while working with an ally, particularly amongst SMEs. Recent developments include a low- cost drone interceptor and a ground-launched ballistic missile with a range greater than 500 kilometres. The Department said that … Read more

HM Treasury
17 Conclusion 5th Report - MoD follow-up Spring 2026

The Department said that it was still awarding contracts, guided by the SDR, despite the...

The Department said that it was still awarding contracts, guided by the SDR, despite the delayed publication of the DIP. However, it acknowledged that the delay was having an adverse impact on industry. The Department acknowledged that serial delays were undermining its credibility with the defence sector. In particular, SMEs … Read more

HM Treasury
18 Conclusion 5th Report - MoD follow-up Spring 2026

Our predecessor Committee first reported on the failings of the Ajax programme in June 2022.

Our predecessor Committee first reported on the failings of the Ajax programme in June 2022. It was told that the Army’s trials team had first raised concerns about vibrations in late 2019, and the Department rightly described it as “unforgivable” that soldiers had been injured because of shortcomings with its … Read more

HM Treasury
19 Conclusion 5th Report - MoD follow-up Spring 2026

The Department said that for our soldiers to develop and maintain the skills they require...

The Department said that for our soldiers to develop and maintain the skills they require to operate on armoured vehicles, it needs to get them back on those vehicles as quickly as possible. However, it asserted that the safety of our soldiers is of the utmost importance.36 Read more

HM Treasury
20 Conclusion 5th Report - MoD follow-up Spring 2026

The Department told us that it had no safety concerns about Ajax provided it was...

The Department told us that it had no safety concerns about Ajax provided it was operated and maintained correctly within its design parameters. It then asserted that the incident during the exercise occurred because the vehicles had not been operated or maintained within those parameters.37 32 Qq 41-42 33 Qq … Read more

HM Treasury
21 Conclusion 5th Report - MoD follow-up Spring 2026

The Department told us it is developing an ‘Ajax 2’ package of upgrades, including composite...

The Department told us it is developing an ‘Ajax 2’ package of upgrades, including composite rubber tracks and automatic track tensioners, as a technical solution which would reduce the need for soldiers undertaking the maintenance checks. These modifications are intended to make Ajax a more comfortable ride for its crew … Read more

HM Treasury
22 Conclusion 5th Report - MoD follow-up Spring 2026

After many difficult years with both recruitment and retention, the latest public statistics for the...

After many difficult years with both recruitment and retention, the latest public statistics for the year to October 2025 point to a corner being turned, with the number of people joining the Armed Forces exceeding the number leaving. All three services have recorded a reduction in the number of trained … Read more

HM Treasury
23 Conclusion 5th Report - MoD follow-up Spring 2026

Data indicates that the time taken to recruit new personnel has fallen.

Data indicates that the time taken to recruit new personnel has fallen. Overall, the average time between someone applying to join and them starting basic training reduced from 496 days in 2023 to 290 days in 2024, and the Department said that this needs to come down further.43 In 2024, … Read more

HM Treasury
24 Conclusion 5th Report - MoD follow-up Spring 2026

Initiatives that have helped improve retention include a new housing strategy, wraparound childcare and improved...

Initiatives that have helped improve retention include a new housing strategy, wraparound childcare and improved pay, and the Department particularly flagged the importance of housing.46 Day-to-day maintenance and servicing of the estate has begun to improve, albeit from a very poor starting point, with satisfaction with repairs increasing from 23% … Read more

HM Treasury
25 Conclusion 5th Report - MoD follow-up Spring 2026

The Department acknowledged, however, that there remains much to do to create better, more consistent...

The Department acknowledged, however, that there remains much to do to create better, more consistent homes and family experiences for our Armed Forces, and that it will take a decade to create a qualitatively better situation. Following the buy-back of 36,000 houses from Annington Homes, the estate is just under … Read more

HM Treasury
26 Conclusion 5th Report - MoD follow-up Spring 2026

The Department said that ideally it would want to know which of the measures it...

The Department said that ideally it would want to know which of the measures it has taken to improve recruitment and retention are having which of the effects. It has not, however, analysed this. Instead, the Department said it should be doing all these things, because a modern employer should … Read more

HM Treasury

Oral evidence sessions

1 session
Date Witnesses
23 Mar 2026 Air Marshall Tim Jones CBE · Ministry of Defence, Aneen Blackmore · Ministry of Defence, Jeremy Pocklington CB · Ministry of Defence, Lt Gen Anna-Lee Reilly · Defence Equipment and Support, Rupert Pearce · Ministry of Defence View ↗

Who gave evidence

5 witnesses
WitnessOrganisationSessions
Air Marshall Tim Jones CBE Ministry of Defence 1
Aneen Blackmore · Director General Finance Ministry of Defence 1
Jeremy Pocklington CB · Permanent Secretary Ministry of Defence 1
Lt Gen Anna-Lee Reilly · Director General Core Delivery Defence Equipment and Support 1
Rupert Pearce · National Armaments Director Ministry of Defence 1

Correspondence

1 letter
DateDirectionTitle
20 Apr 2026 To cttee Letter from the Permanent Secretary of the Ministry of Defence to the Chair of …