MoD up to £21bn short of cash for equipment, MPs warn

BRITAIN’S armed forces could be almost £21bn 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.

Committee chairwoman Meg Hillier said: “The department must be more rigorous and realistic in its approach to costing its equipment plan. It also needs to be more open with Parliament and the public about its finances, commitments and their costs to taxpayers.”

The report, released yesterday, said the biggest concern was over a need to bring forward some of the cost of building the next generation of nuclear missile submarines, the £31bn Dreadnought class, plus its nuclear warheads.

Shadow defence secretary and Llanelli MP Nia Griffith said: “This report paints a damning picture of a department in complete chaos. Our nation’s defences require proper investment, not more excuses and denial.

“It is time for Conservative ministers to address the enormous affordability gap that has emerged on their watch.”