Source · Select Committees · Public Accounts Committee
Recommendation 23
23
The Integrated Review of Security, Defence, Development and Foreign Policy was delayed until March 2021,...
Conclusion
The Integrated Review of Security, Defence, Development and Foreign Policy was delayed until March 2021, but in November 2020 the government announced it would provide an additional £16.5 billion of defence funding over the next four years.70 The Department said that the recent funding settlement gives it the opportunity to address the challenges of Single Living Accommodation more fully.71 We asked how much of this additional money would be used on Single Living Accommodation, and the Department told us “a significant amount”, although it was unable to give a precise figure until the Review was published. The money will be spread across equipment procurement and 62 Q 52; C&AG’s Report, para 4.2 63 Q 77 64 Qq 79, 82–84; C&AG’s Report, para 4.2, Figure 13 65 Q 85 66 Qq 102–103 67 C&AG’s Report, paras 4.5, 4.6 68 Q 52 69 Qq 77–79; C&AG’s Report, para 4.6 70 C&AG’s Report, The Equipment Plan 2020 to 2030, Session 2019–21, HC 1037, January 2021 71 Q 14 Improving single living accommodation for service personnel 17 support, people and infrastructure.72 The Department did add, however, with reference to the £2 billion that consultants had estimated was needed to get all of the Single Living Accommodation into line with the Department’s Building Performance Standards, that it is unlikely to be at that kind of level. The Department stated that it needed to reduce the size of the estate and will work to free up money in that way.73 We expressed concern that the additional £16.5 billion of funding seemed to have been spent more than once before it had even arrived with the Department. The Department stated that it would be spent on a combination of areas, including remedying financial problems and further investment in people, equipment and infrastructure.74 Annington Homes
Government Response
Not Addressed
HM Government
Not Addressed
6: PAC conclusion: We are concerned that, although Commands have plans to improve Single Living Accommodation, this will only address the worst problems, and available funding may be used to meet other demands. 6: PAC recommendation: In the light of the publication of the Integrated Review, the Department should reassess its plans and the funding needed to improve Single Living Accommodation, taking account of the promised minimum standard, and focusing on making as much money available as soon as possible to start addressing years of underinvestment. 6.1 The government agrees with the Committee’s recommendation. Target implementation date: March 2022 6.2 The department agrees that funding SLA improvements is important and needs a higher priority than it has historically been afforded. It is important to note that investment into 15 SLA remains a delegated matter for the single Services. The department sets policy and standards but does not centrally ringfence funding for accommodation so that it can continue to ensure resources are appropriately balanced across all its priorities and that Top-Level Budget holders are empowered to make appropriate funding decisions. 6.3 However, the need to invest in SLA is recognised and Top-Level Budget holders have already prioritised significant investment into SLA improvement plans over the next decade. Through Annual Budgeting Cycle 2021, SLA investment plans have been updated in line with deliverability considerations and wider Defence investment decisions, including those required by the Integrated Review. 6.4 The department will continue to annually review plans to ensure they remain flexible and able to cope with changes to the minimum standard for SLA and the DAS as both mature. The next review will be in Annual Budgeting Cycle 2022.