Source · Select Committees · Public Accounts Committee
Recommendation 23
23
The Department also needs ‘headroom’ in its budget to keep up with the pace of...
Conclusion
The Department also needs ‘headroom’ in its budget to keep up with the pace of change on new technologies.66 It is therefore assessing how much contingency is appropriate for both the nuclear programme and more conventional equipment projects in the Plan.67 The Department told us it also plans to invest in new capabilities for which 55 Q 14 56 Q 24 57 Qq 14, 24, 40, 79 58 Q 25, 53, 99 59 Q 102 60 Q 29 61 Qq 39, 55, 79 62 Q 30 63 Q 95 64 C&AG’s report, para 1.11 65 Qq 38, 42 66 Qq 78, 95 67 Q 41 Defence Equipment Plan 2020–2030 15 future funding requirements are unclear. For example, the Department is establishing a new Space Command and seeking to build its capacity in this domain but has not yet set out its investment plan.68 Responding to affordability pressures
Government Response
Acknowledged
HM Government
Acknowledged
3.3 Since the Committee's report, the department published the Defence Command Paper which sets out new policy aims and the capability decisions that were underpinned by the additional £16.5 billion investment from the 2020 Spending Review. The department has taken a balanced approach, with an appropriate level of risk and contingency, investing in the current programme and new capabilities such as space, research and development (R&D) and the Future Combat Air System (FCAS). In doing so, the department has demonstrated that it has the mechanisms in place to deliver a coherent programme and to fund modernisation will disinvest in capabilities such as in the case of Warrior Capability Sustainability Programme (CSP).