Select committee: Public Accounts Committee

Conclusion 14

Fiftieth Report - Defence Equipment Plan 2020–2030 Published 16 Mar 2021 Addressed to HM Treasury
Conclusion (the committee's words)
We have previously recommended that the Department should improve its financial skills and asked what progress had been made.34 The Department had not increased the number of professionally qualified finance staff, and said it was unhappy that the proportion of finance staff with a professional qualification remained at 41%, the same as last year.35 The Army, Navy and Royal Air Force also had staff shortages in their finance sections, with one third of Equipment Plan-related posts vacant. The Department said it is seeking to train and recruit staff with finance qualifications but acknowledged that these plans were not moving fast enough. Despite not having enough staff with a professional finance qualification, the Department told us that it still had confidence in its cost forecasts.36

From: Public Accounts Committee, Fiftieth Report - Defence Equipment Plan 2020–2030 (HC 693), 16 March 2021

Government response

The government responded to the whole report on 31 August 2021 (deadline 16 May 2021).

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government states that it agrees with the Committee's recommendations that are set out in the response, each with a stated target implementation date, and sets out related work already under way.

  • On affordability, it agrees that the next Equipment Plan report must demonstrate affordability, and says that report (Autumn 2021) will set out the implications of the 2020 Spending Review settlement and the Integrated Review.
  • On transparency over the additional funding, it agrees and says it "will write to the Committee before summer recess" with a summary of investment and savings decisions, with a target date of June 2021.
  • On defence cost inflation, it agrees and says it will write to the Committee alongside the Autumn 2021 Equipment Plan report, and states it "is committed to changing attitudes and behaviours within the Defence acquisition system".
  • On finance capability, it agrees with a target date of March 2023, noting that "It takes time to both train and recruit professionally qualified staff, but numbers will increase over time."

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