Recommendation 7

In our report on the Equipment Plan 2019–2029, we expressed our concern that the Department had still not established an affordable long-term investment programme in military equipment and had missed opportunities to take the necessary difficult decisions to develop an affordable plan. We urged the government to set a balanced defence budget that reflects new priorities and ambitions in developing capabilities to meet the evolving threats of modern warfare.11 Yet we continue to see the damaging consequences of failing to address the unaffordability of the Plan.12 The Top Level Budgets (TLBs) were again required to make savings on equipment projects—as they cut over £1 billion from their budgets in 2020–21—and were again restricted from entering into new contracts.13 We remain extremely frustrated that the Department has persisted with these practices while still not addressing the fundamental issue of the long-term affordability of its equipment programme.14