Source · Select Committees · Public Accounts Committee
Recommendation 18
18
On the replacement Warhead programme, the Department pointed to its 2021 action to bring the...
Conclusion
On the replacement Warhead programme, the Department pointed to its 2021 action to bring the Atomic Weapons Establishment back under direct Government control, to help better control costs. In addition, it is investing in skills in the Defence Nuclear Organisation. But the Department did acknowledge that refinement of costs was needed at the next Spending Review, and that the programme would benefit from having a similar contingency arrangement to the Dreadnought Programme.41 Cost reductions and savings
Government Response
Not Addressed
HM Government
Not Addressed
The government agrees with the Committee’s recommendation. Target implementation date: Spring 2023 2.5 The purpose of the Dreadnought contingency is clearly defined. It was established in recognition of the difficulties in accurately forecasting the costs of such complex programmes. It allows for changes in the spending profile or total funding without resorting to spending cuts in the wider Defence programme, so that the Dreadnought programme, critical to the department’s continued national security, can be delivered on schedule. 2.6 The department’s access to Dreadnought contingency funding to date has been negotiated with HM Treasury and each request for contingency funding is subject to HM Treasury scrutiny and approval. 2.7 Discussions are already underway between the department and HM Treasury to agree the future governance of the Dreadnought contingency. As the holder of that contingency, HM Treasury will write to the Committee in due course. 2.8 Work is also underway between the department and HM Treasury on funding arrangements for the Replacement Warhead programme. Current assumption is that any contingency that may be agreed for that programme would be separate from the Dreadnought contingency.