Source · Select Committees · Public Accounts Committee

Recommendation 8

8

The Department told us that it intended to use the Plan’s increased budget to fund...

Conclusion
The Department told us that it intended to use the Plan’s increased budget to fund both new capabilities and existing programmes. Significantly the Plan now includes £8.65 billion budget for the Future Combat Air System (FCAS) programme. This is a step change as previous Plans did not include money to develop the programme beyond initial spending on innovation and technology.12 However, the Department told us that the project is at an early stage and the concept phase will take several years. The next outline business case is not due until 2024.13 No decision will be made on a concept until some time after that.14 The Permanent Secretary told us that refining the costs for FCAS will be a priority in the next Spending Review.15
Government Response Not Addressed
HM Government Not Addressed
2.3 The Future Combat Air System Concept and Assessment phase involving government and industry concludes in 2024. It will provide the evidence and a degree of maturity of the programme specification, schedule, and associated costs. The department is also separately engaging with international partners on cost share and industrial benefits, which will also contribute toward the UK’s affordability position. Further detail will be shared as appropriate in future Equipment Plans and Major Projects Portfolio data.