Source · Select Committees · Public Accounts Committee
Nineteenth Report - MoD Equipment Plan 2023–2033
Public Accounts Committee
HC 451
Published 8 March 2024
Recommendations
8
Rejected
MoD lacks long-term budget certainty beyond March 2025, hindering equipment planning.
Recommendation
The MoD asserted that it was not a gamble to assume that its budget will increase to 2.5% of GDP.21 At present, however, the MoD has budget certainty only to the end of March 2025, which hinders its ability to …
Read more
Government Response Summary
The government explicitly disagreed with the committee's implied recommendation for more budget certainty, stating the Prime Minister's commitment to 2.5% GDP defence spending by 2030 and detailing existing commercial policy changes. It also stated it would not set out a list of capability cuts.
HM Treasury
View Details →
Conclusions (6)
3
Conclusion
Rejected
The MoD’s prioritisation of the Defence Nuclear Enterprise carries a risk that this will further squeeze budgets for conventional capabilities. Maintaining the nuclear deterrent remains the MoD’s highest defence priority. This year’s Plan is the first time that the MoD has set out its nuclear budget separately from other defence …
Government Response Summary
The government rejected the recommendation, stating that hypothesizing about future funding shifts from conventional to nuclear budgets would be speculative and not useful for planning.
1
Conclusion
Rejected
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Ministry of Defence (the MoD) on the Equipment Plan 2023–2033 (the Plan).2
Government Response Summary
The government disagreed with an unspecified recommendation, which it interpreted as a request to set out a list of capabilities that would be cut if budget assumptions are not met, stating this would create operational security risks and undermine industry confidence.
7
Conclusion
Rejected
The MoD told us that if the government fulfils its commitment to spending 2.5% of Gross Domestic Product (GDP) each year on defence, the Plan could well be affordable.18 The current defence budget is 2.1% of GDP, which increases to 2.25% when the UK’s support for Ukraine is included. The …
Government Response Summary
The government disagrees with the implied recommendation, stating the Prime Minister's commitment to 2.5% GDP by 2030 and explaining that it will not set out a list of potential capability cuts due to operational security risks.
11
Conclusion
Rejected
Maintaining the nuclear deterrent remains the MoD’s highest defence priority. This year’s Plan is the first time that the MoD has set out its nuclear budget separately from other defence spending.35 The MoD has sought to de-risk and limit the long-term costs of its nuclear programmes by prioritising their quicker …
Government Response Summary
The government rejects the committee's observation regarding the nuclear budget, stating that speculating on future funding shifts from conventional to nuclear is unhelpful for planning, and nuclear funding is ringfenced.
12
Conclusion
Rejected
The MoD said that its nuclear programmes are in a much healthier position than for many years.37 The MoD has agreed a minimum 10-year budget with HM Treasury for its nuclear activities of £109.8 billion, and it said that the £7.9 billion deficit in the 26 C&AG’s Report, para 1.3 …
Government Response Summary
The government rejects the committee's observation regarding the nuclear budget, stating that speculating on future funding shifts from conventional to nuclear is unhelpful for planning, and nuclear funding is ringfenced.
13
Conclusion
Rejected
The MoD’s prioritisation of the nuclear enterprise carries a risk that this will further squeeze budgets for conventional capabilities, because if additional money is not forthcoming, the MoD has the flexibility to redirect money from its conventional equipment budgets to nuclear programmes.40 However, HM Treasury recognises that it will be …
Government Response Summary
The government rejects the committee's observation regarding the nuclear budget, stating that speculating on future funding shifts from conventional to nuclear is unhelpful for planning, and nuclear funding is ringfenced.