Source · Select Committees · Public Accounts Committee
Recommendation 22
22
The Department has made a number of assumptions about how much it will spend on...
Conclusion
The Department has made a number of assumptions about how much it will spend on its workforce (and other operating costs) and on its estate and infrastructure over the next 10 years. If it spends more than it currently expects to on these areas, it may have to reduce spending on equipment procurement and support.48 The Department acknowledged that there is an aspect of workforce costs that is directly relevant to the affordability of the equipment programme, but that any reduction in the Plan’s budget or contingency would need to be a decision taken in a spending review planning round.49
Government Response
Not Addressed
HM Government
Not Addressed
The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2022 4.2 The department recognises the importance of managing risks to affordability, particularly from challenges in areas such as workforce and estates. 4.3 The EP21 set out an affordable plan for 2021-2031, providing detail of levers in place to protect against the risk of overspend and unaffordability. The 2020 Spending Review uplift, alongside savings measures, enabled the department to address a pre-existing deficit whilst also holding contingency to mitigate against unforeseen risks. 4.4 A major focus of the EP22 will be the affordability picture for 2022-32, how the department is ensuring a sustainable plan and the reliability of data and assumptions behind this. The department will describe the range of risk factors, whilst setting out how it plans to address these to maintain an affordable Plan. 4.5 However, the scope of the Plan and associated report will remain focused on equipment procurement and support, not on defence spending as a whole.