Public Accounts Committee

Defence Equipment Plan 2018–27 inquiry

Inquiry status: open

The Public Accounts Committee will examine the Defence Equipment Plan 2018–27 on Wednesday 14 March 2018.

Scope of the inquiry

Every year the Public Accounts Committee examines the Government’s Defence Equipment Plan. The plan is a ten-year view of the expected cost of equipment and support for the Ministry of Defence. For 2018 to 2027, the expected spend is £179.7 billion.

The National Audit Office (NAO) look at the plan annual, at the request of the Secretary of State for Defence. Reviewing the 2018 to 2027 strategic, the NAO concluded that:

  • The plan was unaffordable
  • The plan did not include £9.6 billion of forecast equipment and support project costs
  • Forecasts of equipment and support projects were understated by £1.3 billion
  • Project costings could be optimistic

The NAO were also concerned that the Department had little financial flexibility to help them move money between budgets and address problems. The Department is already managing an overspend in 2017-18.

The Public Accounts Committee has discussed Defence Equipment with the Ministry of Defence already this Parliament. At this session, the Committee will ask whether the Department how the Department plans to deliver its equipment plan in a financially sustainably way over the long term.

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