Source · Select Committees · Public Accounts Committee
Recommendation 26
26
Acknowledged
Official F-35 whole-life cost figures significantly underestimate true programme expenditure, excluding key costs
Conclusion
In 2013 the Department set out a whole-life cost for the F-35 programme of £18.4 billion, although this only covered the first 48 aircraft out of the 138 that the UK has announced it intends to buy. Before the publication of the National Audit Office report in 2025 this figure had only increased to £18.76 billion and had not taken account of the changed out-of-service date from 2048 to 2069.57 The Department has since published a whole-life cost for 138 aircraft out to 2069 of £57 billion. In correspondence provided after our evidence session the Department stated that this figure was based on the A variant for the final 63 aircraft, which is cheaper than the B variant, and that it does not include related costs such as personnel, infrastructure and fuel.58 The National Audit Office calculated that if these related costs were included the whole-life cost would be £71 billion.59
Government Response Summary
The department will continue to strengthen its approach to whole life cost modelling as part of the work that is being taken forward under Defence Reform. The department already develops whole life cost models that extend beyond equipment costs, for example covering personnel and infrastructure costs too, but accepts that there is an opportunity to go further in developing and presenting a fuller and more complete view of through-life cost.
Government Response
Acknowledged
HM Government
Acknowledged
The government agrees with the Committee’s recommendation. Target implementation date: November 2026 5.4 Whole life cost analysis is undertaken during a capability’s planning and delivery phase and is included as a mandated element of the capability’s investment case at the point of outline and full business case approval decisions. Whole life costs are used to inform both economic assessment of investment choices and financial planning. While the department already develops whole life cost models that extend beyond equipment costs, for example covering personnel and infrastructure costs too, the department accepts that there is an opportunity to go further in developing and presenting a fuller and more complete view of through-life cost. The department will continue to strengthen its approach to whole life cost modelling as part of the work that is being taken forward under Defence Reform.