Source · Select Committees · Defence Committee
Recommendation 103
103
Accepted
Insufficient defence funding means Armed Forces operate well beyond reasonable planning assumptions
Conclusion
Professor Chalmers thought it unlikely there would be an increase in defence spending anytime soon given the UK’s poor economic performance, as any increase would have to come either from cuts in other government spending or an increase of taxation.218 The Minister for the Armed Forces recognised that the funding was not available for an increase in the size of the Armed Forces so it could continue to manage both its operational and warfighting readiness: “We are just going to have to accept that we will be running the force very hot indeed, and well beyond any reasonable planning assumptions.”219 Mothballing
Government Response Summary
The government states that the MOD's budget has increased to over £50 billion, projected to rise further, and that it is prioritising transforming the workforce model to attract and retain talent. It highlights recent pay increases for junior service personnel (up to 9.7%) and other efforts to boost recruitment and retention amidst existing challenges.
Government Response
Accepted
HM Government
Accepted
On 18th July the Government published the Defence Command Paper 2023 (DCP23). The Defence Command Paper (DCP) built upon the DCP of March 2021. This mid-cycle refresh was needed given three changes in circumstance: i) the evolving threat picture–not least Russia’s invasion of Ukraine and China’s growing assertiveness–and the technological advances since 2021; ii) the increase in the MOD’s budget, now over £50 billion a year for the first time and next year we expect it to rise to around £55.6bn; iii) the publication in March 2023 of a refreshed Integrated Review that set out the Government’s new grand strategic aims and approach. ... We are prioritising transforming the Department’s workforce model to attract and retain the talent needed to operate those capabilities. All three services continue to have the personnel needed to meet their front-line operational commitments, but we are not shying away from this challenge. Increasing recruitment and improving retention are absolute priorities, including improved career opportunities and making it easier for people to re-join, on top of the largest pay increase in more than 20 years. Last year, we laid out pay increases for Armed Forces personnel that will see the highest pay increase targeted towards junior service personnel, providing up to 9.7% for junior ranks and 5.8% for officers.