Source · Select Committees · Public Accounts Committee
Recommendation 3
3
The Department still does not fully understand Carrier Strike’s support and operating requirements or costs.
Conclusion
The Department still does not fully understand Carrier Strike’s support and operating requirements or costs. In 2018, we highlighted that the Department must develop detailed estimates of the costs of supporting and operating Carrier Strike. This is even more important now as the defence budget is likely to come under increasing strain in future years. The Department based its initial assessment 6 Delivering carrier strike of support and operating costs—such as fuel and spare parts—on estimates and has started to update these using information from its sea trials. However, it says that it needs more time to develop better estimates, with the deployment in 2021 providing a crucial opportunity to improve its understanding of what it takes to run a carrier strike group. The Department acknowledges that it has scaled back investment on support activities on affordability grounds, such as postponing buying a second Lightning II spares pack, and tells us that the situation is tight. As a result, it cannot assure us that it has enough funding to meet future support and operating costs. Recommendation: The Department should collect full information on the costs of operating a carrier strike group during its 2021 deployment. This is a crucial opportunity to develop its understanding of consumption issues and the level of spares it needs. The Department should be prepared to set out its findings at a future evidence session with the Committee and be able to demonstrate that it has a better grip of future support and operating costs.
Government Response
Not Addressed
HM Government
Not Addressed
6.1 The government agrees with the Committee’s recommendation. Target implementation date: June 2021 6.2 The department will address the capabilities required to support the carriers as part of the Integrated Review, reporting in the first quarter of 2021. Although taut and requiring mitigation in 2022 when RFA Fort Victoria undergoes maintenance, the support shipping needed to keep the carriers supplied with fuel, munitions and stores is in place for the period up until Full Operating Capability for Carrier Strike in 2023. To allow declaration of the wider Full Operating Capability for Carrier Enabled Power Projection from 2026, and the associated routine operating model, the Fleet Solid Support requirements have been informed by operating experience and a new competition will be launched in the first quarter of 2021. Building on the success of the Type 31 Programme, the department intends to allow international partners to work with UK firms to bid for this British-led shipbuilding project. 6.3 The Integrated Review will consider the requirement for the movement of people and goods within the carrier group, noting that the department will not have a full understanding of the requirement until the capability has been “road tested” in 2021. The task is currently performed by existing utility helicopters as an interim solution. The Rotary Wing strategy element of the Integrated Review will address the out of service dates of existing helicopters, so this maritime intra-theatre lift task is one of a number that require a long-term solution. The Review should also set out the maritime elements of the future joint force including the role and numbers of anti-submarine warfare frigates. Once the Review is published, the department will evaluate the outcomes in detail and present the future investment plan accordingly.