Britain has no ‘credible plan’ to fund Defence Ministry: PAC
The UK’S Public Accounts Committee (PAC) issued a scathing assessment on Friday that asserted the government’s current approach lacks a ‘credible plan’ to adequately fund the Defence Ministry (MOD).
It said that undermines the credibility of the nation’s armed forces. Chancellor Jeremy Hunt pledged that defence spending will rise to 2.5 per cent of Gross Domestic Product (GDP) once ‘economic conditions allow’.
But the PAC contended that the absence of a solid strategy casts doubt on the feasibility of the promise.
In a report on Friday, the PAC urged the government to exercise firmer control on defence procurement processes, highlighting the unprecedented disparity between the Mod’s budget and its military capability requirements.
“Despite a budget increase of £46.3bn (Us$59.7bn) 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.
The PAC’S findings suggest that the deficit could balloon by an additional £12bn if all branches of the armed forces were to fully account for the costs associated with delivering the government’s expected military capabilities.
Attributing part of the financial strain to inflation and adverse foreign exchange movements, the report identifies the Mod’s decision to fully fund the nuclear enterprise as a primary driver
,behind escalating costs.
Expenses at the Defence Nuclear Organisation, responsible for managing the UK’S nuclear deterrent, surged by £38.2bn since last year’s plan.
“In an increasingly volatile world, the Ministry of Defence’s lack of a credible plan to deliver fully funded military capability as desired by Government leaves us in an alarming place. But this problem is not new,” Dame Meg Hillier MP, chair of the committee, said in a statement.