Select committee: Public Accounts Committee
Recommendation 28
43rd Report - MoD’s oversight of Reserve Forces’ and Cadets’ Associations
Published 5 Sep 2025
Addressed to HM Treasury
Public Accounts Committee MoD’s oversight of Reserve Forces’ and Cadets’ Associations All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
The Department told us that over the last two years it had strengthened its financial oversight of the RFCAs and that monthly conversations between finance teams meant that it understood performance and risks.45 However, the Department did not have an overall financial framework for the RFCAs which complied with HM Treasury requirements. In April 2022 the Department asked HM Treasury to review its existing financial framework with the Council and the review raised concerns about its compliance with HM Treasury rules. The Department had begun work on a new financial framework which would address these concerns but has not yet completed it. It said it had been waiting for governance reforms to play through so that these could be reflected in the new framework, but that a finalised draft 40 Qq 68 to 70 and 72; C&AG’s Report, para 2.28 41 Qq 68 and 69; C&AG’s Report, para 2.28 42 Qq 69 and 71 43 Qq 73 to 81; C&AG’s Report, paras 2.29 and 2.30 44 Qq 73 to 76 45 Qq 63 and 64 17 was currently with HM Treasury for review. The Department explained that the next step would be to respond to comments from HM Treasury and that it expected to publish the new framework in the next few months.46 46 Qq 63 to 66; C&AG’s Report, para 2.26 18
From: Public Accounts Committee, 43rd Report - MoD’s oversight of Reserve Forces’ and Cadets’ Associations (HC 893), 5 September 2025
Government response
Latest Treasury Minutes progress report to the Committee of Public Accounts on the Forty-third Report of Session 2024-26
The government responded to the whole report on 4 June 2026 (deadline 5 November 2025).
Treasury minutes: Government response to the Committee of Public Accounts on the Forty-third report from Session 2024-26
Published 19 January 2026.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government agrees with most of the Committee's recommendations on the Reserve Forces' and Cadets' Associations, with target dates mainly of March or June 2026, and disagrees with one on publishing the 2023-24 accounts.
- On the Reserves, it agrees to set out its plan by March 2026 and says it will provide updates on progress as requested; it plans legislative measures in the next Armed Forces Bill to increase Active Reserves towards the 20% target, "when the financial situation allows".
- On Cadets, it agrees to a plan by June 2026 and says development of a programme plan for growth in Cadet numbers is "well underway", including work on adult volunteers and safeguarding capacity.
- On the proposed NDPB, it agrees to update the Committee by March 2026 and says the proposal "remains one of the measures being developed for potential inclusion in the 2026 Armed Forces Bill".
- It disagrees with the recommendation to publish the 2023-24 accounts in a compliant format, saying it is working to lay the 2023-24 and 2024-25 accounts "as planned in 2025-26" and acknowledging that "certain areas are not currently compliant with the FReM".