Source · Select Committees · Public Accounts Committee
Recommendation 17
17
As at April 2020, the Department had spent £6.0 billion on the Lightning II project,...
Conclusion
As at April 2020, the Department had spent £6.0 billion on the Lightning II project, 37 C&AG’s Report, para. 2.1 and Figure 6 38 Q 22; C&AG’s Report, paras. 1.14 and 1.15 39 Qq 20, 43–45; C&AG’s Report, para. 3 40 Q 50 41 Qq 22, 49 42 Q 50 43 Q 23; C&AG’s Report, para. 1.19 44 Q 39 Delivering carrier strike 13 out of an approved budget of £10.5 billion. The approved budget had increased by £1.4 billion (15%) since 2017. However, the Department has forecast that the programme’s whole life costs for 48 jets to 2048 would be £18.4 billion, which broadly breaks down as £5 billion for development, £5 billion for production and £8 billion for sustainment and support. This is £7.9 billion more than the current approved budget, and does not include operating costs, such as manpower, fuel and weapons expenditure.45
Government Response
Not Addressed
HM Government
Not Addressed
4a: PAC recommendation: It should provide the Committee with a full and detailed breakdown of Lightning II related expenditure to date, the approved budget and the forecast whole life costs of the Programme. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: January 2021 4.2 The department has arranged for a private briefing session on 20 January 2021 to discuss Lightning II related expenditure. To note: The briefing date has been agreed with the Committee, however, this does not meet the recommendation timeline (within one month). 4.3 The briefing will cover the Whole Life Costs (WLC) of the 48 F-35 aircraft that the department is currently committed to purchase and includes the current programme approval levels. The procurement strategy for Lightning II is one of incremental acquisition and was approved at Main Gate 2 in 2006. This strategy tied the UK to a through-life collaborative partnership within the Joint Strike Fighter Programme, using the governance and procurement processes set out in the Production, Sustainment and Follow-on Development memorandum of understanding. 4.4 The WLC model considers all the acquisition phases from Lightning inception to aircraft disposal and are based upon the current mandate for 48 F-35Bs with an out of service date of 2048. The costs do not include operating costs such as service delivered manpower, fuel and weapons expenditure that are covered under separate Top-Level Budgets.