Select committee: Public Accounts Committee
Conclusion 24
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)
In the meantime, the intensive use of existing equipment is contributing to 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 nearing the end of their in-service lives.75 For example, there is uncertainty about whether two Type 23 frigates that have recently gone into refit will return to active service.76 If they do not, this 65 Q 111 66 C&AG’s Report, para 2.12, 2.13 67 Q 127 68 C&AG’s Report, para 2.13 69 Q 108 70 Q 112; C&AG’s Report, para 2.5 71 Qq 108, 112 72 Q 42 73 Defence Procurement Minister oral statement on the Integrated Procurement Model – 28 February 2024 – GOV. UK (www.gov.uk) 74 Qq 33, 34, 84 75 Qq 46, 114 76 Q 35 MoD Equipment Plan 2023–2033 15 would further curtail the Royal Navy’s already limited capacity to provide escorts.77 The Type 23 class is coming to the end of its in-service life, and the cost of refitting them has increased from £23 million to £100 million because their age means that the necessary work is now much more extensive and takes almost twice as long to complete.78 Reliance on allies
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".