Select committee: Public Accounts Committee
Conclusion 23
Nineteenth Report - MoD Equipment Plan 2023–2033
Published 8 Mar 2024
Addressed to HM Treasury
Public Accounts Committee The Equipment Plan 2023–2033 All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
An emphasis on pace is one of five key features of the new “Integrated Procurement Model” which the Minister for Defence Procurement announced on 28 February.73 For example, the MoD plans to get new capabilities into the hands of the Armed Forces more quickly by introducing them into service when the “minimum deployable capability”— 60% or 80% of the capability—has been developed, then adding the remaining capability when in service (this technique is sometimes referred to as ‘spiral development’). In our session, the MoD cited its modular approach to the Boxer armoured vehicle project to illustrate this method.74 The new procurement model also includes a joined-up approach based on “pan-defence affordability”; a new Integration Design Authority; prioritising exportability to maximise the potential market for UK-developed defence capabilities; and closer engagement with industry to encourage innovation and make supply chains more resilient.
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".