UK has no ‘credible’ plan to fund military equipment as multi-billion pound deficit revealed

A group of MPs have warned that the UK does not have a “credible” plan to buy all the weapons it needs after a huge rise in the cost of its nuclear deterrent left a record funding gap.

Inflation and a weak pound have also left a gap of at least £16.9 billion in a rolling ten-year plan to purchase equipment for the Army, Royal Navy and Royal Air Force, the Public Accounts Committee said in a scathing report.

MPs said on Friday that if all the capabilities the Army needs – not just what it can afford – were included in the cost, the actual deficit could be closer to £30bn.

committee blames Department of Defense (Department of Defense) Postponing painful decisions about which equipment projects must be eliminated to make the program affordable.

Instead, defense ministers were found to have been confident that the government would increase defense spending as a share of national income from around 2.1% to 2.5%, although there were no guarantees as to when this would happen.

The findings came after members of Congress and military experts expressed frustration at the Treasury Department’s failure to increase defense spending. spring budget This comes despite growing security threats and increased military investments by friends and foes alike.

Dame Meg Hillier, chair of the Public Accounts Committee, said: “In an increasingly volatile world, the Ministry of Defence’s lack of a credible plan to deliver fully funded military capabilities as required by the Government leaves us in an alarming position .”

She said this was not a new problem and that defense procurement was characterized by ballooning costs and delays.

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‘Affordability has worsened significantly’

Mrs Hillier said: “We are disappointed that not only are the same problems we are used to seeing happening here, but they appear to be getting worse.”

“Despite the budget increase, this year’s plans show a significant deterioration in affordability. The Department of Defense must take better control or it will not be able to deliver the military capabilities our country needs.”

The committee said the £16.9bn affordability gap was the largest since the MoD began publishing rolling 10-year equipment plans in 2012.

This comes despite the Government increasing its military equipment spending plans for the decade to 2033 – the period being scrutinized by MPs – by £46.3bn 12 months ago to £288.6bn.

However, hopes of balancing the books were subsequently dashed by a £38.2 billion increase in funding for the Defense Nuclear Organization – which is responsible for renewing a fleet of nuclear submarines and the missiles and warheads they carry – over the same period.

Embargoed until 0001 Sunday 4 February Handout photo released by the UK Ministry of Defense on 4 July 2020 showing HMS Daring, the fourth of the UK-built Royal Navy's Astute class submarines, arriving at HMS Clyde The base’s new home. Britain will not be ready for a full-scale war unless the government solves the problems of its armed forces. Lawmakers warned of capacity and inventory shortages and a recruitment crisis. Published: Sunday, February 4, 2024.
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Astute-class nuclear submarine of the British Royal Navy. Image: PA

Speaking to Sky News this morning, Finance Minister Gareth Davies said he did not “endorse” the PAC’s findings and that defense spending was increasing.

“We’ve received record funding for our defence,” he said.

“It’s vital that we do this and the war in Ukraine shows how important it is that we have a resilient and ready armed force because you never know where the next conflict is going to be.

“I think we are spending over £50 billion on defense this year, an increase of £11 billion in the last spring budget, so money will be spent on our defence.”

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Britain’s “war readiness” questioned

Lawmakers have expressed concern that the rising costs of Britain’s top defense priorities could further squeeze the budget for its conventional military capabilities.

The MoD said inflation would push the cost of the equipment program up by £10.9bn over ten years, while unfavorable foreign exchange rates – such as buying equipment from US companies when the pound is weak against the dollar – would add to pressure. Another £2.2 billion.

“However, the Department of Defense is unwilling to address this deficit by making significant decisions to cancel programs,” the report said.

“It asserts that such decisions should wait until after the next spending review, which is expected to take place in 2024 but could conceivably be delayed by the upcoming general election, the timing of which is also uncertain.”

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Insufficient across the board

There is also a lack of skilled officials to oversee the implementation of the complex procurement program – the equipment program covers some 1,800 different projects, buying everything from communications equipment to warships.

In a sign of tension, only two of the 46 projects in the government’s major projects portfolio – the most important equipment projects – were rated highly likely to be delivered on time, on budget and with quality.

By comparison, the successful delivery of five other large projects – including new communications technology, nuclear submarine reactors and missiles – was deemed impossible.

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Asked about the report’s findings, a MoD spokesman said: “Our armed forces stand ready to protect the UK and as a major contributor to NATO we will continue to defend our national interests and those of our allies.

“We are delivering the capabilities our forces need – significantly increasing spending on defense equipment to £288.6 billion over the next decade, introducing new procurement models to improve procurement and confirming our desire to spend 2.5% of GDP on defence. .

“By retaining a portion of our equipment program as uncommitted spend, we have the flexibility to better adapt to changing technologies and emerging threats.”

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Surja, a dedicated blog writer and explorer of diverse topics, holds a Bachelor's degree in Science. Her writing journey unfolds as a fascinating exploration of knowledge and creativity.With a background in B.Sc, Surja brings a unique perspective to the world of blogging. Hers articles delve into a wide array of subjects, showcasing her versatility and passion for learning. Whether she's decoding scientific phenomena or sharing insights from her explorations, Surja's blogs reflect a commitment to making complex ideas accessible.

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