Source · Select Committees · Defence Committee
Recommendation 69
69
Not Addressed
Allocated funds for stockpile replenishment at risk of diversion to offset MOD funding shortfalls.
Conclusion
The Government has previously pointed to its successes in signing contracts—in June 2022 it noted that it had secured “contracts for Next Generation Light AntiTank Weapons, Starstreak High Velocity Missiles, Lightweight Multirole Missiles, Archer 6X6 Artillery 132 Q406 133 Q406–7 134 Q453 135 Q213; 220; 237; 322 136 Ammunition supply chain crisis: Ukraine war tests Europe in race to rearm, Financial Times, 7 February 2023 137 Alex Vershinin, The Return of Industrial Warfare, RUSI Commentary, 17 June 2022 138 Oral evidence taken on 5 September 2023, HC (2022–23) 1804, Q29 139 Q76; 162 140 Oral evidence taken on 6 July 2021, HC (2021–2022) 166, Q282; Oral evidence taken on 19 April 2022, HC (2021– 2022) 608, Q93 Ready for War? 29 Systems and Carl Gustaf recoilless rifles”.141 In addition to the £560 million announced at the Autumn Statement in 2022, the IR23 had announced £1.95 billion to replenish stockpiles in 2023–24 and 2024–25 “and to increase them in line with a reassessment of appropriate levels … and to invest in the resilience of the UK’s munitions infrastructure”142 and DCP23 a further £2.5 billion on “replenishing—and augmenting—” munitions and stockpiles “through the coming decade”143. However, the NAO’s recent report on the Equipment Plan 2023–33 found that the £1.95 billion allocated in the IR23 (and then the Spring Budget 2023) was not ringfenced and so the MOD “is considering using it to help offset its funding shortfall in 2023–24 and 2024–25”.144
Government Response Summary
The government reiterates the allocation of £1.95Bn from the 2023 Spring Budget for munitions and medical stockpiles and contracts to replenish equipment, but it does not address the committee's concern regarding the NAO's finding that these funds were not ringfenced and could be used to offset other funding shortfalls.
Government Response
Not Addressed
HM Government
Not Addressed
£1.95Bn was allocated in the 2023 Spring Budget to address long-standing challenges across the defence programme to improve our resilience, which will make us better able to respond to new threats. This funding is being used to build the department’s munitions and medical stockpiles and support a wide range of critical activity. To date investments include support to deliver a large purchase of 155mm munitions, building storm shadow stockpiles, supply chain mapping, wargaming, enhancements to a range of critical infrastructure, and medical stockpiles. In addition to these uplifts, we have placed almost £1Bn in contracts to replenish UK stocks of equipment and munitions already granted to Ukraine. Contracts have been placed to replenish UK stockpiles include Next Generation Light Anti-Tank Weapons; Starstreak High Velocity Missiles; Lightweight Multirole Missiles; Javelin missiles; Brimstone missiles; 155mm artillery rounds; and 5.56mm rifle rounds. Exact stockpile holdings are held at secret and are not releasable on the grounds of national security. However, the war in Ukraine has highlighted to the UK and allies that we all need to invest more in munitions to increase stockpile levels and ensure we have the industrial base required. In response the MOD has developed a strategy for munitions, and we continue to work with allies and partners, particularly NATO, to ensure the UK and NATO has the munitions it needs.