(Ministry of Defence):I am
pleased to place in the Library of the House this year’s financial
summary of the Defence Equipment Plan. This is the sixth
consecutive annual publication of the equipment plan summary, and
demonstrates the Ministry of Defence’s investment and the need to
continue progress in driving improvements, reform and efficiency,
with a plan to spend £180 billion on equipment and support over the
decade out to 2026-27 which will provide our Armed Forces with the
capability they need.
The Government remains committed to the Defence Budget increasing
by 0.5% above inflation each year and the Department is focusing
on where best to invest across the entire Defence programme in
order to remain on top of an ever-changing and increasing threat
environment. However, it was evident following the 2016 annual
planning cycle that both uncertainty and risk had increased in
the Equipment Plan. It did not, unfortunately, prove possible to
address these issues satisfactorily in the 2017 Annual Budget
Cycle (ABC17) as a result of which, the Equipment Plan emerging
from ABC17 contains a high level of financial risk and an
imbalance between cost and budget.
These risks have informed the Department’s work on the National
Security Capability Review and associated work in the 2018 Annual
Budget Cycle. The Department recently launched the Modernising
Defence Programme. We aim to use this work to deliver better
military capability and value for money in a sustainable and
affordable way, and to ensure that defence capabilities
complement other national security capabilities in the most
effective way.
The Defence Equipment Plan 2017-2027 is attached to this email.
