Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Deferred
Prioritisation of short-term affordability in F-35 programme led to higher long-term costs
Conclusion
The Department acknowledged that it has, on occasion, prioritised short-term affordability over value for money in the F-35 programme, to keep within its overall departmental budget.46 Notably, in 2021 the Department took the decision to delay investment in the Air Signature Assessment Facility (ASAF). Although this decision saved £82 million in the short-term out to 2024–25, it will have cost the Department £16 million more than that by 2031–32 because of inflation resulting from choosing to build later. The Department viewed this as a “conventional consequence” of managing an annual departmental budget covering many programmes.47
Government Response Summary
The government agrees with the Committee’s recommendation and states that as part of the production of the forthcoming Defence Investment Plan, the government is considering the long-term impacts of any savings measures on costs and capability of all major programmes.
Government Response
Deferred
HM Government
Deferred
5.1 The government agrees with the Committee’s recommendation. Target implementation date: November 2027 5.2 As part of the production of the forthcoming Defence Investment Plan, the government is considering the long-term impacts of any savings measures on costs and capability of all major programmes. The Defence Investment Plan will prioritise spending across the whole Defence budget as voted to them by Parliament, and set out in the Spending Review settlement, to maximise value for money overall (not just in the F-35 programme). Further details will be published as part of the Defence Investment Plan.