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https://www.ft.com/content/a54a89e0-06ab-11e8-9650-9c0ad2d7c5b5
Britain’s public spending watchdog has issued a damning assessment of how the Ministry of Defence manages its procurement budget, identifying a series of issues that could leave it with a funding gap of up to £21bn over the next decade.
The National Audit Office also accused the MoD of lacking evidence for some of its claimed £7.9bn cost savings, which were meant to stretch the £179bn, 10-year equipment budget further.
The NAO, in its review of the MoD’s equipment plan for 2017-18, warned that the renewal of Britain’s nuclear deterrent could destabilise the 10-year budget due to its size and complexity. The watchdog’s audit of the Dreadnought and Astute submarine projects found that costs had risen by £941m in just the last year.
Amyas Morse, head of the NAO, said the MoD needed to take “urgent action” to address a funding shortfall identified in the watchdog’s report of between £4.9bn and £20.8bn. Failure to do so would mean that major defence projects would have to be reduced delayed or cancelled, said an NAO report.
The MoD was already dealing with a “significant projected overspend” this year, added the report. “The department’s equipment plan is not affordable,” said Sir Amyas. |
