Source · Select Committees · Defence Committee
Recommendation 23
23
Accepted
Defence readiness suffers from in-year budget pressures, exacerbated by defence inflation.
Conclusion
The evidence is that readiness is suffering because of in-year pressures on budgets at a crucial time of preparation to meet potential conflict. It is vital that the additional funds allocated to defence by the Government do not get swallowed by defence inflation. Both we and the Government recognise the importance of public support (and sacrifice) for the difficult choices which must be made to finance the defence posture required by the current threat. Any money wasted due to an inability to increase capacity will have a significant impact on public opinion. (Conclusion, Paragraph 92)
Government Response Summary
The government agrees on effective spending and commits to delivering nearly £6 billion in new savings over this Parliament through efficiency measures, with the MOD publishing a Defence Reform and Efficiency Plan as part of the DIP.
Government Response
Accepted
HM Government
Accepted
The Government wholeheartedly agrees that every pound of taxpayers’ money spent on defence must be spent as effectively as possible, delivering value for money for the UK. Defence Reform, alongside speedier decision-making, to enable a clearer focus on outcomes and securing faster delivery. We will deliver nearly £6 billion of new savings over the course of this Parliament through efficiency and productivity savings, civilian workforce changes, structural simplification, and contractual efficiencies. As we are focusing on delivering savings through increased efficiency and productivity, we expect to minimise any capability impacts. The MOD will publish a Defence Reform and Efficiency Plan as part of the DIP, which will provide further detail on the range of reforms across the MOD which will deliver these efficiencies.