UK has no ‘credible’ plan to fund military equipment as multibillion-pound deficit revealed, report
The UK has no “credible” plan to buy all the weapons it needs after a huge jump in the cost of the nuclear deterrent helped to create a record funding gap, a group of MPs has warned.
Inflation and a weak pound also contributed to the hole of at least £16.9bn in a rolling, 10-year plan to procure equipment for the Army, Royal Navy and Royal Air Force, the Public Accounts Committee said in a scathing report.
The actual deficit is likely to be closer to £30bn if all the capabilities required by the Army – rather than only those it can afford – are included in the costs, the MPs said on Friday.
The committee accused the Ministry of Defence (MoD) of putting off painful decisions about what equipment programmes would have to be cancelled for the plan to be affordable.
Instead, defence chiefs were found to have been basing their sums around the optimistic belief that the government would boost defence spending to 2.5% of national income from around 2.1% – even though there is no guarantee when this will happen.
The findings came after MPs and military experts expressed dismay at a failure by the Treasury to increase defence spending in the Spring Budget despite mounting security threats and at a time when friends and foes are ramping up their own military investments.
Dame Meg Hillier, the chair of the Public Accounts Committee, said: “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.”
She said this was not a new problem, with defence procurement characterised by ballooning costs and delays.
‘Clear deterioration in affordability’
“We’re disappointed that not only are the same problems we’re used to seeing on display here, but they also appear to be getting worse,” Dame Hillier said.
“Despite a budget increase, this year’s plan shows a clear deterioration in affordability. The MoD must get a better grip, or it won’t be able to deliver the military capabilities our country needs.”
The committee said the £16.9bn gap in affordability was the largest since the MoD started publishing its rolling 10-year equipment plan in 2012.
It came despite the government increasing planned spending on military equipment over the ten years to 2033 – the period that the MPs were examining – by £46.3bn to £288.6bn from 12 months earlier.
However, any hope of balancing the books was then sunk by a £38.2bn rise in funding over the same period for the Defence Nuclear Organisation – which is charged with renewing a fleet of nuclear-armed submarines and the missiles and warheads it carries.
Royal Navy’s Astute Class nuclear submarine. Pic: PA
The MPs voiced concern the spiralling costs for what is the UK’s top defence priority could further squeeze the budget for its conventional military capabilities.
Adding to the pressure, the MoD said inflation would push up costs for the equipment programme by £10.9bn over the decade, while unfavourable foreign exchange rates – such as when buying equipment from US companies when the pound is weak against the dollar – would add a further £2.2bn.
“The MoD, however, is unwilling to address this deficit by making major decisions about cancelling programmes,” the report said.
“It asserts that such decisions should wait until after the next Spending Review, which is expected in 2024 but might conceivably be delayed by the forthcoming general election, the timing of which is also uncertain.”
Please use Chrome browser for a more accessible video player
UK’s ‘warfighting readiness’ in doubt
Read more:
UK to supply 10,000 more drones to Ukraine
Rolls-Royce to create hundreds of nuclear submarine jobs in Scotland and Wales
Shortfalls across the board
There was also a shortage of skilled officials to oversee the delivery of complex procurement programmes – the equipment plan covers some 1,800 different projects to buy everything from communications gear to warships.
In a sign of strain, only two out of 46 projects included in the Government Major Projects Portfolio – so the most important equipment programmes – are ranked as being highly likely to be delivered to time, budget and quality.
By contrast the successful delivery of five other big projects – including new communications technology, nuclear submarine reactors and missiles – are rated as unachievable.
Asked about the findings of the report, a Ministry of Defence spokesperson said: “Our Armed Forces stand ready to protect the UK and as a leading contributor to NATO, we continue to defend our national interests and those of our allies.
“We are delivering the capabilities our forces need – significantly increasing spending on defence equipment to £288.6 billion over the next decade, introducing a new procurement model to improve acquisition, and confirming our aspiration to spend 2.5% GDP on defence.
“By maintaining part of our equipment plan as uncommitted spend, we have the flexibility to better adapt to changing technology and emerging threats.”
Looking to live tax-free with crypto in 2025? These five countries, including the Cayman Islands, UAE and Germany, still offer legal, zero-tax treatment for cryptocurrencies.
Politics
Children with special needs will ‘always’ have ‘legal right’ to support, education secretary says
The education secretary has said children with special needs will “always” have a legal right to additional support as she sought to quell a looming row over potential cuts.
The government is facing a potential repeat of the debacle over welfare reform due to suggestions it could scrap tailored plans for children and young people with special needs in the classroom.
Politics latest: Minister says ‘those with broadest shoulders should pay more tax’
Speaking in the Commons on Monday, Bridget Phillipson failed to rule out abolishing education, health and care plans (EHCPs) – legally-binding plans to ensure children and young people receive bespoke support in either mainstream or specialist schools.
Laura Trott, the shadow education secretary, said parents’ anxiety was “through the roof” following reports over the weekend that EHCPs could be scrapped.
She said parents “need and deserve answers” and asked: “Can she confirm that no parent or child will have their right to support reduced, replaced or removed as a result of her planned changes?”
Please use Chrome browser for a more accessible video player
Sophy’s thought on whether to scrap EHCPs
Ms Phillipson said SEND provision was a “serious and complex area” and that the government’s plans would be set out in a white paper that would be published later in the year.
“I would say to all parents of children with SEND, there is no responsibility I take more seriously than our responsibility to some of the most vulnerable children in our country,” she said.
“We will ensure, as a government, that children get better access to more support, strengthened support, with a much sharper focus on early intervention.”
ECHPs are drawn up by local councils and are available to children and young people aged up to 25 who need more support than is provided by the Special Educational Needs and Disabilities (SEND) budget.
They identify educational, health and social needs and set out the additional support to meet those needs.
In total, there were 638,745 EHCPs in place in January 2025 – up 10.8% on the same point last year.
‘Rebel ready’
One Labour MP said they were concerned the government risked making the “same mistakes” over ECHPs as it did with the row over welfare, when it was eventually forced into a humiliating climbdown in the face of opposition by Labour MPs.
“The political risk is much higher even than with welfare, and I’m worried it’s being driven by a need to save money which it shouldn’t be,” they told Sky News.
“Some colleagues are rebel ready.”
The MP said the government should be “charting a transition from where we are now to where we need to be”, adding: “That may well be a future without ECHPs, because there is mainstream capacity – but that cannot be a removal of current provision.”
Later in the debate, Ms Phillipson said children with special educational needs and disabilities would “always” have a “legal right” to additional support as she accused a Conservative MP of attempting to “scare” parents.
“The guiding principle of any reform to the SEND system that we will set out will be about better support for children, strengthened support for children and improved support for children, both inside and outside of special schools,” she said.
Read more:
Government to ban ‘appalling’ non-disclosure agreements
Government declines to rule out wealth tax
“Improved inclusivity in mainstream schools, more specialist provision in mainstream schools, and absolutely drawing on the expertise of the specialist sector in creating the places where we need them, there will always be a legal right … to the additional support… that children with SEND need.”
Her words were echoed by schools minister Catherine McKinnell, who also did not rule out changing ECHPs.
She told the Politics Hub With Sophy Ridge that the government was “focused on reforming the whole system”.
“Children and families have been left in a system where they’ve had to fight for their child’s education, and that has to change,” she said.
She added that EHCPs have not necessarily “fixed the situation” for some children – but for others it’s “really important”.
Politics
Government to ban ‘appalling’ non-disclosure agreements that silence victims of abuse at work
Victims will no longer have to “suffer in silence”, the government has said, as it pledges to ban non-disclosure agreements (NDAs) designed to silence staff who’ve suffered harassment or discrimination.
Accusers of Harvey Weinstein, the former film producer and convicted sex offender, are among many in recent years who had to breach such agreements in order to speak out.
Labour has suggested an extra section in the Employment Rights Bill that would void NDAs that are intended to stop employees going public about harassment or discrimination.
The government said this would allow victims to come forward about their situation rather than remain “stuck in unwanted situations, through fear or desperation”.
Zelda Perkins, former assistant to Harvey Weinstein, led the calls for wrongful NDAs to be banned. Pic: Reuters
Zelda Perkins, Weinstein’s former assistant and founder of Can’t Buy My Silence UK, said the changes would mark a “huge milestone” in combatting the “abuse of power”.
She added: “This victory belongs to the people who broke their NDAs, who risked everything to speak the truth when they were told they couldn’t. Without their courage, none of this would be happening.”
Deputy prime minister Angela Rayner said the government had “heard the calls from victims of harassment and discrimination” and was taking action to prevent people from having to “suffer in silence”.
Please use Chrome browser for a more accessible video player
Weinstein found guilty of sex crime in retrial
An NDA is a broad term that describes any agreement that restricts what a signatory can say about something and was originally intended to protect commercially sensitive information.
Currently, a business can take an employee to court and seek compensation if they think a NDA has been broken – even if that person is a victim or witness of harassment or discrimination.
“Many high profile cases” have revealed NDAs are being manipulated to prevent people “speaking out about horrific experiences in the workplace”, the government said.
Announcing the amendments, employment minister Justin Madders said: “The misuse of NDAs to silence victims of harassment or discrimination is an appalling practice that this government has been determined to end.”
The bill is currently in the House of Lords, where it will be debated on 14 July, before going on to be discussed by MPs as well.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike