Recommendation 24

In addition to these reductions, the Department’s spending plans currently assume further workforce savings of £2.5 billion over the 10 years to March 2031.52 The Department told us that plans had not yet been drawn up to achieve these reductions, and they will be subject to agreement in the next spending review.53 In terms of wages, the Department admitted it does not know how it will afford the pay rises likely to be required as a result of higher inflation and wage growth in the wider economy in the next few years. The Department told us it was looking at a range of options, and now has pay freedoms to recruit more highly skilled staff, particularly in programme and project management.54 45 NAO report, paragraphs 12, 2.17 46 Q97 47 Q101 48 NAO report, paragraph 2.28 49 Q28 50 C&AG’s Report, para 2.29 51 Q102 52 C&AG’s report, para 2.30 53 Q112 54 Q115 14 Ministry of Defence Equipment Plan 2021–31