Armed forces´ equipment plan `unaffordable´, watchdog…

MoD’s equipment plan has £13bn funding black hole meaning military may not be able to expand its F-35 fighter jet fleet, watchdog warns

  • MoD’s predicts £183.6b spending between 2019 and 2029, an overrun of £2.9b
  • However in the ‘worst-case scenario’ this extra spending could rise to £13 billion
  • NAO warned reluctance on ‘difficult decisions’ means capabilities could be lost
  • Shortfall in the funding could mean Britain cannot expand F-35 fighter jet fleet

The Ministry of Defence’s equipment plan is facing a funding shortfall of up to £13 billion, meaning Britain may not be able to expand its F-35 fighter jet fleet. 

The National Audit Office said the MoD’s unwillingness to take ‘difficult decisions’ meant military capabilities could be lost as funding for them simply runs out.

A contract for 48 jets, thought to cost £9.1billion by 2025, has already been signed but there is uncertainty for future plans, reports The Telegraph.

The Ministry of Defence is facing a funding shortfall of up to £13 billion, meaning Britain may not be able to expand its F-35 fighter jet (pictured) fleet after a current contract for 48 is completed

Training and maintenance is included in the contract but the future of this is also not clear and dependent on trials.

The spending warning comes after the Prime Minister confirmed armed forces’ procurement processes would form part of what the Government has billed as the deepest review of foreign and defence policy since the Cold War.

The MoD’s central projection is that the rolling 10-year programme to purchase and support aircraft, ships and weaponry will cost £183.6 billion between 2019 and 2029 – a budget overrun of £2.9 billion.

But in the ‘worst-case scenario’, if all the risks associated with the plan were to materialise, that could rise to £13 billion.

It is the third year in succession that the National Audit Office has concluded the plan is ‘unaffordable’.

While the central estimate for the shortfall is down on last year, the NAO said this was because the MoD had made ‘more optimistic judgments’ about the likely costs, which had taken out £7.8 billion, rather than address the underlying issues. 

The MoD's predicts its rolling 10-year programme to purchase and support aircraft, ships and weaponry will cost £183.6b between 2019 and 2029 – a budget overrun of £2.9b (pictured is a F-35B fighter jet flies over HMS Queen Elizabeth while in Portsmouth)

The MoD’s predicts its rolling 10-year programme to purchase and support aircraft, ships and weaponry will cost £183.6b between 2019 and 2029 – a budget overrun of £2.9b (pictured is a F-35B fighter jet flies over HMS Queen Elizabeth while in Portsmouth)  

The MoD has been trying to manage the financial pressures by establishing tighter control of in-year expenditure.

But the NAO said this ‘short-term focus’ on living within its annual budget meant existing military capabilities were increasingly being lost.

It said that unless action was taken, the ‘floating hospital’ facilities provided by the ship RFA Argus would go, while the number of Sentry early warning radar aircraft could be cut.

The head of the NAO Gareth Davies said the MoD had failed to take the ‘necessary strategic decisions’ to address the ‘affordability gap’ in its plans.

‘There is evidence that its continued short-term focus on living within annual budgets is increasingly affecting the armed forces’ ability to maintain and enhance the UK’s military capability,’ he said.

The National Audit Office  said the MoD's 'short-term focus' on living within its annual budget meant existing military capabilities were increasingly being lost (pictured is an RAF F-35B jet as it takes off from the flight deck of the Royal Navy aircraft carrier HMS Queen Elizabeth)

The National Audit Office  said the MoD’s ‘short-term focus’ on living within its annual budget meant existing military capabilities were increasingly being lost (pictured is an RAF F-35B jet as it takes off from the flight deck of the Royal Navy aircraft carrier HMS Queen Elizabeth)

‘The MoD needs to determine its strategic priorities so that it can develop an affordable long-term programme of investment.’

A Ministry of Defence told The Telegraph: ‘The F-35 programme remains on track and within budget, providing a game-changing capability for our Armed Forces. 

‘We continue to drive down costs with every purchase and remain committed to purchasing 138 F-35 Lightning aircraft.’ 

Defence Secretary Ben Wallace insisted the MoD had made ‘encouraging progress’ in improving its financial management but acknowledged there was ‘work still to do’.

‘We will need to create the financial headroom in our equipment plan to harness emerging technologies and develop the battle-winning capabilities of tomorrow,’ he said.

‘We know that to get this right, we must accelerate our work to mobilise, modernise and transform so that we deliver more effectively and efficiently over the long-term.

‘Reviewing our acquisition process will be an important part of this work.’

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