NATIONAL AUDIT OFFICE: Ministry of Defence: The Major Projects Report 2011
A statement from The Rt Hon Margaret Hodge MP, Chair of the Committee of Public Accounts:
The report highlights continuous poor planning and performance with the result that the Ministry of Defence’s largest military equipment projects are delivering less, at a greater cost than planned, and taking longer to be completed.
Reducing and delaying capability to save money in the short-term while long term costs increase is not good value for money.
It is shocking that the cost of completing these 15 projects is over £6 billion more than originally planned with less equipment being secured for the money spent and with delays of almost 27 years over the whole programme. Short term measures to balance the budget account for a significant cost increase on these projects during 2010-11, almost half a billion pounds. On all major projects since 2000, the Department has avoided costs of around £8 billion by reducing the amount of equipment it planned to buy.
Delaying projects and reducing what they deliver are not sensible ways to invest in defence capability.