MP, Labour’s Shadow Defence Secretary, commenting on the
NAOs report of the MoD Equipment Plan showing that the government’s
plan for defence is unaffordable, said:
“For the fourth year in a row, the NAO confirms that Tory
Ministers are badly mismanaging the defence budget. This is
another damning report showing that the defence equipment plan is
becoming more unaffordable and casts doubt on the ability of
ministers to break their short-sighted decision making.
“The £17B blackhole weakens the foundations for upgrading
Britain’s defences and leaves the Armed Forces scrabbling to find
short-term savings. There are big decisions that can no longer be
ducked in the Integrated Review, including on tanks, aircraft for
our carriers and the size of the Armed Forces.
“Ministers must now publish the delayed Integrated Review, and
set out a strategy to deal with the funding shortfalls built up
over the last decade.”
Ends
Notes to Editors
- The NAO Report says the assessment does not include the
Prime Minister announced upgrade to defence assets: “We
continue to have reservations about the Department’s approach
to estimating its funding shortfall, which are set out in
paragraphs 12 to 15. The Department’s assessment of the
affordability of the 2020–2030 Plan shows the position before
the government announced additional funding for military
capabilities in November 2020.” P.7
- The NAO Report says decision making has been focussed on
short-term pressures: “The Department faces the fundamental
problem that its ambition has far exceeded available resources.
As a result, its short-term approach to financial management
has led to increasing cost pressures” P.12
- In a letter to the Chair of the Public Accounts Committee
the MoD Permanent Secretary confirms the assessment does not
take into account the impact of Covid 19: “This note
presents the affordability of our spending plans for equipment
procurement and support at 1 April 2020, which were developed
through our annual financial planning exercise following the
outcome of Spending Round 2019 (SR19) last autumn. It does not
therefore recognise the implications of the Covid-19 pandemic,
which is having a very significant effect on the economy
including the defence sector.” https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/951435/20200111_PUS_to_PAC_EP20-30.pdf
