The UK’s Public Accounts Committee (PAC) released a scathing assessment which argues that the government’s current approach fails to provide a plan to adequately fund the Ministry of Defence.
The PAC argues that the lack of a firm strategy casts doubt on whether this promise can be realised, undermining confidence in the country’s armed forces.
The Commission called on the government to exercise greater control over defence procurement processes, highlighting an unprecedented mismatch between the MoD’s budget and its military capability needs.
“Despite a budget increase of £46.3bn over the next ten years compared to last year’s Equipment Plan, this year’s Plan’s £16.9bn deficit marks an unmistakable deterioration in its financial position,” it said.
Chancellor Jeremy Hunt has promised that defence spending will rise to 2.5% of gross domestic product (GDP) as soon as “economic conditions allow.”
In addition, the deficit could rise by a further £12 billion if all branches of the armed forces fully account for the cost of delivering the government’s expected military capability, the PAC reported.
Attributing some of the financial strain to inflation and unfavourable exchange rate movements, the report cites the MoD’s decision to fully fund the nuclear enterprise as the main driver of escalating costs.
Defence Nuclear Organisation spending has increased by £38.2 billion compared to last year’s plan, but Dame Meg Hillier MP issued a statement noting the problem has worsened despite the budget increase:
“We’re disappointed that not only are the same problems we’re used to seeing on display here, but they also appear to be getting worse. Despite a budget increase, this year’s Plan shows a clear deterioration in affordability,” he said.
