According to a group of MPs, the Ministry of Defence‘s equipment strategy is “out of date” and disregards the lessons learnt from the conflict between Russia and Ukraine.
The MoD’s 10-year plan, according to the Public Accounts Committee, revealed a “broken system,” which could jeopardize the UK’s capacity to support Nato.
Although the MoD was praised for its rapid action in assisting Ukraine, a damning study released today claimed there isn’t “sufficient urgency” to provide new capabilities required by our own armed forces.
The report says there are doubts over whether the equipment plan is flexible and responsive enough, and that there is an ‘optimism bias’ affecting budget planning because it ignores the worsening economic environment.
The MoD has forecast a deficit of £2.6 billion in the first seven years of the 10-year plan – without including external cost pressures such as inflation and foreign exchange movements.
The plan relies on having a budget surplus of £5.2 billion in the final three years of the plan, as well as achieving all of the department’s efficiencies and savings to cut project costs by £30.4 billion.
The report concludes that the MoD needs to ‘urgently reassess’ how affordable its equipment procurement and support programmes are.
Sir Geoffrey Clifton-Brown, deputy chair of the committee, said: ‘If the MoD does not act swiftly to address the fragility of its supply chain, replenish its stocks and modernise its capabilities, the UK may struggle to maintain its essential contribution to Nato.
‘The 2022/23 equipment plan is already somewhat out of date. It doesn’t reflect the lessons emerging from Ukraine, more than a year in. And every year it’s the same problems – multibillion-pound procurement problems.
‘Equipment arrives in service many years late and significantly over budget, and some of it just isn’t arriving at all.
‘The MoD still does not have or seem to be able to attract the skills it needs to deliver the plan.
‘Neither taxpayers nor our armed forces are being served well. There needs to be meaningful change of this broken system.
‘The department needs to break from this cycle of costly delay and failure and deliver a fundamental, root-and-branch reform of defence procurement.’
John Healey, Labour’s shadow defence secretary, said: ‘The Conservatives are failing to secure Britain’s national defence for the future.
‘This report reinforces the serious questions over critical capabilities and the ability to field a war fighting division which are threatening to undermine the UK’s contribution to the Nato.
‘Ministers must ensure our troops have the right kit to fight and fulfil our Nato commitments.
‘Labour would apply a ‘Nato test’ to major defence programmes to ensure our alliance obligations are on track.’
An MoD spokesperson said: ‘The Public Account Committee’s assessment that our equipment plan does not align with the lessons learnt from the Ukraine conflict is unsubstantiated.
‘The lessons we have seen from Ukraine have largely confirmed our 2019 warfighting analysis, which underpinned our subsequent investment decisions, meaning we have not needed to substantially reform our equipment pipeline.
‘Nor do we recognise the broken procurement system painted by this report. The department routinely assesses time, cost and risk factors on all projects, and delivers the vast majority on time and in budget, and we have made numerous changes to improve procurement practices where projects have fallen short.
‘Some of these projects are decades long, and many of our reforms will take time to deliver results.’
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