Source · Select Committees · Public Accounts Committee
Recommendation 33
33
Rejected
Rising nuclear costs may restrict funding for critical non-nuclear defence needs, like military accommodation.
Conclusion
The increase in nuclear costs may restrict the money available for other important needs.76 For example, improving poor accommodation is crucial in addressing the military’s recruitment and retention problems.77 The Department recognises that this is an area where there has been sustained under-investment for many years, and it will take several years for the Department to get all accommodation up to the standard it would like. The Department said it was now addressing this, but noted that future funding for this would be one of the balance of investment decisions later this year.78 70 Q 12 71 Qq 13 and 14 72 C&AG’s Report, Equipment Plan 2023, para 2.17 73 Q 15 74 Q 21 75 Q 16 76 C&AG’s Report, Equipment Plan 2023, para 2.19 77 Q 1 78 Q 2 18
Government Response Summary
The government rejects the implicit recommendation, stating that detailed DNE financial reporting is already provided through wider MOD financial reporting and other existing documents, to avoid inconsistency.
Government Response
Rejected
HM Government
Rejected
6.1 The government disagrees with the Committee’s recommendation. 6.2 The annual update to Parliament has never been a vehicle for detailed financial reporting on the Defence Nuclear Enterprise (DNE). The government believes it is better to provide DNE financial information as part of wider MOD financial reporting to avoid any risk of inconsistency or misaligned timing of data. Financial information on the DNE is provided, along with financial information relating to wider defence budgeting and spending, in the department’s Annual Report and Accounts and as part of the Parliamentary Estimates process. It is also expected that financial information will be included in the Defence Investment Plan. 6.3 The government is continuing to consider the recommendations made previously by the Public Accounts Committee for a new committee to be set up to scrutinise DNE expenditure.