Source · Select Committees · Public Accounts Committee
Recommendation 23
23
Deferred
Delaying 809 Naval Air Squadron infrastructure led to significantly increased construction costs
Conclusion
In correspondence provided after our evidence session the Department told us that 809 Naval Air Squadron’s infrastructure is another example of short-term savings resulting in higher overall costs. In 2020 the Department forecast that the cost of building the infrastructure would be around £56 million and be completed in 2023. But to save money the Department decided to delay the delivery of the infrastructure to 2029. As a result of raw material and workforce cost increases, the Department now forecasts that the construction will cost £154 million despite a reduction in requirements.48
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.