Recommendation 9

The Permanent Secretary also explained that the Department has had to live with an annual budget cycle and plan its equipment programme without the certainty of funding over a 10-year period. He explained that this was very difficult to manage. The 2020 Spending Review has provided the Department with the certainty of funding for the 7 Qq 24, 29, 30, 36, 43, 44, 56, 65, 76 8 C&AG’s Report, para 13 9 Qq 31, 32, 72,73 10 C&AG’s Report, para 13 11 Committee of Public Accounts, Defence Capability and Equipment Plan, 10th Report of Session 2019–2021, 15 July 2020 paras 1, 7 12 Qq 24, 30, 31, 39, 13 C&AG’s Report, para 2.3 14 Qq 10 - 13, 15 Q 35 16 Q 36 10 Defence Equipment Plan 2020–2030 next four years, providing it with a basis for planning and the opportunity to address the structural problems with the Equipment Plan.17 The Permanent Secretary told us that in 2010 the defence budget had been made affordable, but at the expense of capability. Then in 2015, capability shortfalls were addressed but without sufficient funding. The budget was, therefore, constantly unbalanced in one way or another. He told us that he hoped now to develop a coherent and sensible package of capabilities which are backed up by resources, allowing the Department to plan properly in the longer-term.18 Producing a reliable assessment of funding shortfalls