Select committee: Public Accounts Committee

Recommendation 22

Nineteenth Report - MoD Equipment Plan 2023–2033 Published 8 Mar 2024 Addressed to HM Treasury
Recommendation (the committee's words)
Since the end of COVID-19 restrictions, there has been increased international demand for key components and skilled workers from other sectors, such as the car and commercial aviation industries.69 This has contributed to the slow delivery of defence equipment, including digital communications, armoured vehicles and Royal Navy ships.70 For example, solving technical issues affecting the state-of-the-art Type 26 frigate has contributed to delays, while demand for semiconductors by other industries has affected the progress of the Army’s Boxer armoured fighting vehicle project.71 The delivery of new warships for the Royal Navy is currently considerably slower than in some countries such as Japan, although the MoD is hopeful that the pace will quicken as projects, such as Type 31 frigates, become more established.72

From: Public Accounts Committee, Nineteenth Report - MoD Equipment Plan 2023–2033 (HC 451), 8 March 2024

Government response

The government responded to the whole report on 28 May 2024.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government agrees with the Committee's recommendations on consistent forecast costing, clearer signals to industry, assessing the new procurement model and reliance on allies, but disagrees with those on setting out cuts under a 2.5% shortfall and on reporting nuclear funding trends.

  • On the 2.5% of GDP aspiration, the government disagrees with the recommendation; the department "does not intend to set out a list of capabilities that would be cut" because this would risk operational security and industry confidence.
  • On nuclear costs, the government disagrees with the recommendation. If conventional budgets are affected by nuclear funding needs the department "will make that clear", but it considers going further "wholly speculative".
  • The government agrees that all budget holders should treat forecast costs consistently, with a target implementation date of Spring 2025. The department "will seek to standardise" the data and its presentation.
  • The government agrees to assess the impact of the Integrated Procurement Model, with a target date of December 2024. It will "monitor the increase in pace of delivery and provide updates as appropriate".

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