Select committee: Public Accounts Committee
Conclusion 22
Fiftieth Report - Defence Equipment Plan 2020–2030
Published 16 Mar 2021
Addressed to HM Treasury
Public Accounts Committee Defence Equipment Plan 2020-2030 All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
We are concerned that the Department has no flexibility in its 2020–2030 Equipment Plan budget, which limits its ability to respond quickly to new or emerging threats.63 The National Audit Office report showed that the Department has only made provision for projects that it has already begun and has not allocated any funding to develop new high- priority capabilities or replace existing capabilities.64 The Department allocated all of its 2020–21 contingency in response to the financial pressures that it faces but accepted that its approach was not best practice. It told us that it needed to build some margin back into the programme to avoid repetition of the short-term money saving measures that do not achieve value for money.65
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."