‘£17bn black hole in military budgets’
DEFENCE:
The Ministry of Defence has faced criticism over a “funding black hole” in the lead-up to today’s publication of a wide-ranging review of UK defence and security policy.
The Commons Public Accounts Committee says the military’s plans for equipment over the next decade fall short by as much as £17bn.
THE Ministry of Defence (MoD) has faced criticism for failing to address the “funding black hole” in its equipment budget in the lead-up to the publication of a wide-ranging review of UK defence and security policy.
The Prime Minister will make a statement in the House of Commons today outlining the findings of the Integrated Review – billed as the most significant overhaul of the UK’s strategic posture since the Cold War.
But on the day of the announcement, the Commons Public Accounts Committee (PAC) has accused defence officials of drawing up a 10-year military equipment and capabilities plan with a funding “black hole”, potentially as big as £17bn, at its centre.
MPs warned that the MoD also faces additional cost pressures, estimated at more than £20bn, to develop future defence capabilities not yet included in the plan.
In its Defence Equipment Plan 2020-2030 report published today, the PAC said the financial situation was “highly destabilising for defence and must not continue”.
In November, Boris Johnson set out a £16.5bn increase in defence spending over four years to pay for military modernisation, including advances in cyber and space technology.
Committee chair Meg Hillier, however, said the additional money was in danger of being “swallowed whole” by the gaps in the budget.
The Labour MP said: “The outgoing permanent secretary of MoD [Sir Stephen Lovegrove, set to take up the role of national security adviser] was clear in evidence to our inquiry that the new £16.5bn defence funding settlement is not being added to a balanced budget and is simply, in his words, ‘not all going to go on new and revolutionary kit’.
“On the face of it, it’s potentially swallowed whole by the up to £17.4bn funding black hole at the centre of our defence capabilities, and Sir Stephen was equally clear about the capability reductions that will have to happen for the UK to look forward to any enhancements. What is crucial is that this new money is not instead just eaten up, once again, by the constant, debilitating time and budget overruns that have been eroding our national defence and security for years.”
The committee’s report warned of “tough choices” when it came to implementing the equipment plan.
“As the 2020-2030 plan is not affordable, the department needs to make tough choices to reduce the existing funding shortfalls, including disinvestment in capabilities that it decides it no longer needs,” the MPs said.