Recommendation 19

The Department could not provide us with a detailed explanation of how it planned to use the additional £16.5 billion of funding as ministers have yet to finalise decisions.51 Given that the 2020–2030 Equipment Plan is unaffordable, it accepted that it would need to use some of the new funding to address the shortfalls on the existing equipment programme.52 The Department told us that, even after this, it will need to cut capabilities to establish an affordable programme and that Ministers faced some tough choices in deciding which capabilities to retire or reduce.53 Furthermore, the Department has been clear that it faces funding pressures elsewhere, for example across its defence estate, and will need to assess how much of the additional resources will be spent on spending infrastructure, people and operations to address shortfalls in these areas. It told us it will set out its plan to manage the next four years and the equipment programme over the next ten years.54 45 Q 57 46 Q 28, 40 47 C&AG’s report, para 20 48 Committee of Public Accounts, Defence Capability and Equipment Plan, 10th Report of Session 2019–2021, 15 July 2020 49 Qq 10, 11 50 Qq 12, 13 51 Qq 14, 39, 54 52 Qq 24, 28, 36, 44 – 49, 56, 57, 102 53 Qq 11, 43 54 Qq 50, 51 14 Defence Equipment Plan 2020–2030