Up to £21bn cash shortage for forces equipment, MPs warn

Britain’s Armed Forces could be almost £21 billion short of the money needed to buy equipment over the next 10 years, a scathing report from MPs has warned.

A Public Accounts Committee investigation said the Ministry of Defence (MoD) “simply does not have enough money to buy all the equipment it says it needs” and accused it of not being clear with politicians or the public about the financial risks it faces.

Its report said the “affordability gap” in the MoD’s equipment plan for 2017 to 2027 had worsened since it reviewed it last year, and criticised officials for still being “unable to determine the size” of it accurately.

The most conservative estimate is £4.9bn, rising to a worst-case scenario of £20.8bn more than the 10-year £179.7bn equipment budget, they found.

This budget accounts for 40% of the MoD’s planned spending in that period.

The PAC’s 2017 review found a budget shortfall of £7bn.

The report blasted the plan as “not realistic”, with “weaknesses” in controlling costs.

The construction of the next generation of nuclear missile submarines and the F-35 fighter programme were among those singled out for criticism.

Committee chairwoman Meg Hillier said: “The MoD’s inability to better quantify that affordability gap has consequences not just for its confirmed spending plans, but also its ability to prepare for serious challenges in national defence.

“The department must be more rigorous and realistic in its approach to costing its equipment plan.”