Conclusion 5

The MoD’s strategy for replacing ageing capabilities is undermined by the slow delivery of new systems, resulting in military capability gaps. Despite the MoD working with prime contractors to better understand its supply chain, increased international demand for key components and skilled workers has contributed to the slow delivery of defence equipment, including digital communications, armoured vehicles, and Royal Navy ships. For example, technical issues developing the state-of- the-art Type 26 frigate have contributed to delays, and the delivery of new warships for the Royal Navy is considerably slower than in other countries such as Japan. It has also been difficult for the defence industry to attract suitable candidates because the skilled people it requires, such as engineers, are in high demand globally. As a result, only two of the 46 MoD equipment programmes that are included in the Government Major Projects Portfolio (GMPP) are rated as being highly likely to be delivered to time, budget, and quality. Successful delivery appears to be unachievable for five GMPP programmes, including replacement communications technology, nuclear submarine reactors, and missiles. The MoD said that an emphasis on pace would be a key aspect of the new procurement strategy, which was subsequently announced in the House on 28 February 2024 as the new “Integrated Procurement Model” (IPM). In the meantime, the intensive use of existing equipment is creating a maintenance backlog that will take more time and money to address, leaving the UK’s Armed Forces having to make do with fewer pieces of ageing equipment. Recommendation 5: The MoD should include in next year’s Plan an assessment of what impact its new procurement strategy has had on improving the delivery of new capabilities and set out how this will provide continued improvement going forward.