Source · Select Committees · Public Accounts Committee

Fifty-Second Report - Ministry of Defence Equipment Plan 2021–31

Public Accounts Committee HC 1164 Published 11 May 2022

Report Status

Government responded

Conclusions & Recommendations

33 items (11 recs)

Source

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Government Response

AI assessment · 33 of 33 classified

Accepted 10

Acknowledged 18

Not Addressed 4

Rejected 1

Government response

Treasury minutes: Government response to the Committee of Public Accounts on the Fifty Second report from Session 2021-22 · published 2 Sep 2022

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Recommendations & Conclusions

4 items

2 Recommendation Not Addressed

The Department appears complacent about the affordability of its Plan and still does not yet...

Recommendation

The Department appears complacent about the affordability of its Plan and still does not yet have robust arrangements in place to control the cost of its largest programmes. The Department believes that its Spending Review settlement and the decisions it … Read more The Department appears complacent about the affordability of its Plan and still does not yet have robust arrangements in place to control the cost of its largest programmes. The Department believes that its Spending Review settlement and the decisions it has taken mean its Equipment Plan is now affordable, and that it is striking a better balance between financial and capability risk. We are not convinced that the Plan is as stable as the Department believes, or that it will be able to avoid short-term budget-driven changes to the Plan. The Department clearly finds it difficult to control the costs of the largest programmes and we are concerned that the Department sees the Dreadnought programme ‘contingency’ held by HM Treasury as a blank cheque, freeing it from the need to control costs. This is the Department’s largest programme and it is imperative that cost control is tight. The Department would like to use similar contingency arrangements for the programme to replace the UK’s nuclear warhead. This programme and the Future Combat Air System are at a much earlier stage of development, meaning that costs could be much higher than the current forecast. This uncertainty makes robust cost control still more important. Rising inflation means the cost of delivering projects is likely to rise, particularly if they experience delays. Recommendation: The Department should write to the Committee within the next three months to detail the current cost of the Dreadnought, Replacement Warhead and FCAS programmes and set out how it intends to control the costs of these programmes in future. We recommend that there should be a clearly defined purpose for the Dreadnought contingency and any proposals for a warhead contingency, and that Government 6 Ministry of Defence Equipment Plan 2021–31 should have a robust arrangement in place, including conditions which would have to be met, before HM Treasury would consider providing any additional funds from the contingency. The Departme Show less

Government Response Summary

The response discusses Électricité de France’s (EDF) strategies, plans and the estimated costs, but does not detail the current cost of the Dreadnought, Replacement Warhead and FCAS programmes.

HM Treasury

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1 Conclusion Not Addressed

On the basis of a report by the Comptroller and Auditor General, we took evidence...

Conclusion

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Ministry of Defence (the Department) on the Department’s ten-year Equipment Plan (the Plan) which sets out its plans for the procurement and support … Read more

Government Response Summary

The response acknowledges the report but doesn't address the substance of the conclusion.

HM Treasury

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7 Conclusion Not Addressed

Outside the Plan, we asked if the proposed cuts to the regular Army to 73,000...

Conclusion

Outside the Plan, we asked if the proposed cuts to the regular Army to 73,000 from 82,000 meant the UK would not have enough soldiers.10 The Department stressed to us that the UK has “responded positively” to every request from … Read more

Government Response Summary

The response discusses the Programme, skill development, and risk management, but does not address the question of whether the UK has enough soldiers given proposed cuts to the regular Army.

HM Treasury

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9 Conclusion Not Addressed

The Department also told us it intends to buy more F-35 aircraft.16 It had previously...

Conclusion

The Department also told us it intends to buy more F-35 aircraft.16 It had previously told us that the 48 F-35 aircraft it is currently purchasing would not be enough to sustain Carrier Strike operations throughout the life of its … Read more

Government Response Summary

The response restates the conclusion about the Department's intention to buy more F-35 aircraft.

HM Treasury

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