Select committee: Public Accounts Committee
Conclusion 24
Forty-Eighth Report - MoD Equipment Plan 2022–2032
Published 19 Apr 2023
Addressed to HM Treasury
Public Accounts Committee MoD Equipment Plan 2022-2032 All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
HM Treasury has provided the Department with £560 million to restart production lines in UK companies.62 The Department told us that it is working closely with key suppliers in the UK, including BAE Systems, MBDA and Thales, to invest in long-term strategic capabilities. The Department subsequently wrote to us outlining its acquisition reform initiatives and explaining that DE&S is implementing a refresh of its strategy under its new Chief Executive.63 Improving the supply chain will also require working with allies. The Department has also placed requests for supply with US companies and has engaged with fellow NATO countries to discuss how they can collectively stimulate the industrial supply chain to meet the alliance’s long-term needs.64 We note that attempts to increase supply will be challenging given the current inflationary economic environment, particularly given that inflation tends to be higher in the defence industry than the general economy.65 57 Q 22; Letter from Permanent Secretary to the Chair, 23 January 2023, p.1 58 Q 25; Letter from Permanent Secretary to the Chair, 23 January 2023, p.1 59 Q 21 60 Q 17; Royal United Services Institute, Preliminary Lessons in Conventional Warfighting from Russia’s Invasion of Ukraine: February-July 2022, P55 61 Q 20 62 Q 22 63 Letter from Permanent Secretary to the Chair, 23 January 2023, p.4 64 Q 20 65 Q 88 MoD Equipment Plan 2022–2032 15
From: Public Accounts Committee, Forty-Eighth Report - MoD Equipment Plan 2022–2032 (HC 731), 19 April 2023
Government response
The government responded to the whole report on 21 July 2023 (deadline 19 June 2023).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government disagrees with the Committee's recommendation to publish a timelier Equipment Plan report, and agrees with its recommendations on the Integrated Review refresh, delivery speed, uncertainty, affordability and supply chains.
- On publishing a timelier Equipment Plan report, the government disagrees: the department "does not plan to publish a full equipment plan" while it adapts the plan to the Integrated Review Refresh and manages inflation, but "will write to the Committee with an update".
- It agrees that capability requirements arising from the Integrated Review refresh should be set out to HM Treasury, with a target implementation date of Summer 2023 (Defence Command Paper Update) and Winter 2023 (update to the Committee).
- On delivery speed, it agrees and recognises "the need to balance risk with the speed of capability delivery", noting there "may be scope to take more risk" but "not in every case"; it will write to the Committee by December 2023.
- It agrees to reassess affordability by September 2023, and to provide by December 2023 an assessment of the key sources of uncertainty and risk in the forward plan.