Ministry of Defence: Equipment Plan

Lord Coaker Excerpts

Thursday 7th December 2023 Lords Chamber

Asked by

[Lord Coaker]

To ask His Majesty’s Government what assessment they have made of the National Audit Office’s value for money analysis of the Ministry of Defence’s Equipment Plan 2023 to 2033, published on 4 December.

[The Minister of State, Ministry of Defence (The Earl of Minto) (Con)]

My Lords, the National Audit Office’s report on the equipment plan states that it does not consider the value for money of the MoD’s equipment expenditure or of the specific projects mentioned; nor does it comment on the policy choices that the department makes to develop a plan that meets its future needs. While the National Audit Office report recognises the significant impact that global headwinds and high inflation have had on UK defence, it does not and could not accurately reflect the current or future state of the Armed Forces equipment plan, given that it pre-dates the publication of the defence Command Paper refresh.

--- Later in debate ---

[Lord Coaker (Lab)]

My Lords, the NAO report is deeply disturbing at a time when we have war in Europe, conflict in the Middle East and growing threats globally. As we have just heard from the Minister, the MoD just dismisses it as a dated snapshot that does not reflect reality. The NAO says that the plan is unaffordable and that forecast costs exceed the available budget by £16.9 billion. It says that the MoD estimates that the funding gap could range between £7.6 billion and £29.8 billion. How is that just a dated snapshot?

[The Earl of Minto (Con)]

My Lords, the Ministry of Defence certainly does not consider the report in such a way. Where the Ministry of Defence is coming from is that our Armed Forces are operating in an increasingly contested and dangerous world, and we are working hard to deliver what our servicepeople need to keep the United Kingdom safe. We are in a period of great change, which is why the equipment plan budget has increased to £288.6 billion over the next decade. It is about the next decade—10 years forward.