Select committee: Public Accounts Committee

Conclusion 27

Nineteenth Report - MoD Equipment Plan 2023–2033 Published 8 Mar 2024 Addressed to HM Treasury
Conclusion (the committee's words)
In the meantime, the MoD is considering mothballing Royal Navy ships because of crew shortages, and the only Royal Navy ship able to fully replenish the UK’s aircraft carriers is unavailable this year because of a refit.86 With the support of its allies, the UK’s Armed Forces continue to fulfil a crucial international role.87 However, many of its allies are facing similar challenges to the UK, which might affect their ability and willingness to continue providing extensive support.88 77 Qq 39, 40 78 Q 41; C&AG’s Report, para 2.5 79 Q 41 80 Qq 76, 116, 118, 120 81 Q 61 82 Qq 8, 11, 49 83 Qq 8, 54 84 Qq 10, 11 85 Qq 6, 125 86 Qq 41, 43, 48–50 87 Q 54 88 Qq 108, 117 16 MoD Equipment Plan 2023–2033

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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