43rd Report - MoD’s oversight of Reserve Forces’ and Cadets’ Associations

The MOD ensures due consideration is given to the volunteer estate in its balance of investment decisions through a structured, evidence-based approach. Funding decisions are prioritised according to impact.

The Department must set out by 31 March 2026 its plan for how it will significantly enhance the skills, scale and agility of both the Active and the Strategic Reserves and provide Parliament with regular updates on its progress in achieving its ambition.

The Department will develop a plan by June 2026 for increasing the number of Cadets which sets out how it will ensure that young people from different backgrounds and all parts of the UK can join, address barriers to expansion such as the number of adult volunteers, and maintain robust safeguarding arrangements for the enlarged Cadet forces.

The development of a programme plan for the growth in Cadet numbers is well underway and a Director level Senior Responsible Officer has been appointed. Work is in train within the department to determine the key target areas for growth and a priority is to attract and retain sufficient numbers of suitable adult volunteers.

The government agrees to develop a plan by June 2026 for increasing the number of Cadets, ensuring accessibility for diverse backgrounds and regions, addressing barriers like volunteer shortages, and maintaining robust safeguarding arrangements. A programme plan is underway with regular meetings, a Senior Responsible Officer, and efforts to identify target areas for growth, attract volunteers, and assess safeguarding capacity.

The government agrees to develop a plan by June 2026 for increasing the number of Cadets, ensuring accessibility for diverse backgrounds and regions, addressing barriers like volunteer shortages, and maintaining robust safeguarding arrangements. A programme plan is underway with regular meetings, a Senior Responsible Officer, and efforts to identify target areas for growth, attract volunteers, and assess safeguarding capacity.

The Department will write to the Committee by 31 March 2026 with an update on its progress in establishing an NDPB, including details of how it will ensure the correct balance between the operational effectiveness of the NDPB with the benefits of having local volunteer input.

The government agrees to write to the Committee setting out how it will enhance accountability for the performance of the RFCAs under the current arrangements, pending the establishment of an NDPB. Performance monitoring has been sharpened through Service Level Agreements which include clearer, quantifiable Key Performance Indicators (KPIs).

Accountability for the RFCAs has been enhanced since the 2019 Sullivan Review and performance monitoring has been sharpened, the MOD appointed a single departmental sponsor, service level agreements have been refreshed to include clearer KPIs, and the Senior Team regularly reviews and monitors performance of the RFCAs using KPIs.

The Department will write to the Committee alongside its Treasury Minute response, setting out how it will enhance accountability for the performance of the RFCAs under the current arrangements, pending the establishment of an NDPB.

The MOD ensures due consideration is given to the volunteer estate in its balance of investment decisions and will write to the Committee alongside its Treasury Minute response, regarding progress on its discussions with HMRC relating to the RFCAs’ VAT status.

The government agrees to ensure due consideration is given to the volunteer estate in its investment decisions as it develops its defence investment plan by Autumn 2025. It will assess the volunteer estate alongside the wider defence estate using criteria including operational relevance, value for money, safety and long-term sustainability.

The government agrees to ensure due consideration is given to the volunteer estate in its investment decisions as it develops its defence investment plan by Autumn 2025. It will assess the volunteer estate alongside the wider defence estate using criteria including operational relevance, value for money, safety and long-term sustainability.

The Department submitted a formal submission to HMRC on 1 December 2025 to consider the case and provide further opinion and guidance on what evidence or actions are necessary to be able to recover VAT incurred by MOD on maintaining the volunteer estate and will provide updates on progress.

The department is committed to supporting the RFCAs and ensuring that they meet the required financial standards and has already funded a professionally qualified Finance Director as recommended in the 2019 review and will work closely with the RFCAs to ensure full compliance with public financial requirements.

The Department implemented this recommendation on 18 August 2025.

The government agrees, but states that Defence Statistics already produces data on volunteer numbers, units, and regional breakdowns, and the joint MOD/DfE Cadet Expansion Project provides data on Combined Cadet Force units. It does not commit to developing the specific plan requested.

The government agrees, stating the NDPB proposal is being developed for potential inclusion in the 2026 Armed Forces Bill, with work continuing to ensure local volunteer input is embedded. The department commits to providing updates on this progress as requested by the Committee.

The government agrees, outlining that performance monitoring has been sharpened, KPIs established, a sponsor appointed, and an updated financial framework agreed to enhance accountability under current arrangements. It commits to providing updates on this progress as requested by the Committee.

The government agrees and commits to providing updates on its progress with discussions with HMRC, which will consider the case and provide guidance on recovering VAT incurred on maintaining the volunteer estate.

The government agrees, stating it has already funded a professionally qualified Finance Director and agreed a Treasury-compliant financial framework. The department commits to working closely with RFCAs to ensure full compliance with public financial requirements and will provide updates on progress.

The government agrees, stating it is planning to introduce legislative measures in the next Armed Forces Bill to remove barriers to reserve service and increase Active Reserves. It also commits to planning the reinvigoration of the Strategic Reserve, including scoping engagement and a digitised management approach, and will provide updates on progress.