Recommendation 19

When we last examined the MoD’s inventory management, we found that it was not consistently disposing of inventory it no longer needed and was purchasing items for which it already held sufficient stock.43 The MoD told us that from 2011 to 2023, it achieved a 25% reduction in the net book value of its inventory, which it reduced from £16 billion to £12 billion. It has also removed the financial incentives which encouraged Front Line Commands to over-purchase consumable commodities. However, it is still holding substantial amounts of inventory that is unserviceable, overstocked or beyond the service date of its related platform.44 37 Q 92; C&AG’s report para 2.5 38 Q 86; C&AG’s report para 11 39 Q 91 40 Qq 86–88 41 Qq 88, 97, C&AG’s report para 2.7 42 Qq 88, 97 43 Committee of Public Accounts, Managing the Defence Inventory, Thirty-Second Report of Session 2012–13, HC 745, 28 February 2013, Part Two para 7 44 Q 58 ; C&AG’s Report paras 12, 14 Improving Defence Inventory Management 15