Carrier Strike: Supplementary Report
Published on:The NAO has today issued a supplementary report on the Carrier Strike project, having been given access to briefing papers held by the National Security Secretariat in the Cabinet Office.
The NAO has today issued a supplementary report on the Carrier Strike project, having been given access to briefing papers held by the National Security Secretariat in the Cabinet Office.
The Ministry of Defence, under pressure to make rapid financial savings, is significantly reducing the size of its workforce, by over 54,000 personnel. A report today by the National Audit Office has found that these reductions are happening in advance of the Department’s fully understanding how it will operate with significantly fewer staff.
Action taken by the Ministry of Defence to balance its overall budget in the short term following the Strategic Defence and Security Review has contributed to a near £500 million in-year cost increase in the 15 largest defence projects.
The NAO has published its report on the 2010-11 accounts of the Ministry of Defence.
This Departmental Overview is one of 17 we have produced covering our work on each major government department. It summarises our work on the Ministry of Defence during 2010-2011.
Changes to the aircraft carrier project in the 2010 defence review will save £3.4 billion but leave the UK without carrier capability for nine years.
This memorandum has been prepared to support the Committee of Public Accounts’ consideration of the Ministry of Defence’s provision of accommodation to its service personnel.
MOD’s procurement budget is now more stable, despite a £754m increase in the cost of the carriers, but there are still risks to the affordability of the equipment plan.
The suspension and cancellation of a number of key armoured vehicle projects since the 1998 defence review has resulted in the Armed Forces facing a significant shortage in the principal armoured vehicles they require, until at least 2024-2025.
The cost of each Typhoon aircraft has risen by 75 per cent. While Typhoon performs some defence tasks now, it won’t take on all roles until 2018.
The MOD supply chain is currently not value for money. It would be much more efficient if directed by a modern information system.
The MOD have been unable to provide evidence to support the existence and value of certain assets and inventory balances. In addition, the Department’s accounting policies are not fully compliant with International Financial Reporting Standards.
The Ministry of Defence does not place sufficient emphasis on financial management in its decision making. Annual financial plans at the MOD have been over-committed. During 2009-10 the Department had to find additional savings of £800 million to bring its planned expenditure back into line with its budgets.
The MOD, one of the largest landowners in the UK, has strengthened its estate planning and achieved significant receipts from disposal of property. However, the changes are not yet sufficient to drive value for money for the taxpayer rigorously.
The MOD acted promptly to revert to the decision to buy the vertical take-off version of the Joint Strike Fighter but will have to manage significant risks.
The NAO has reported on the 2012-22 Equipment Plan of the Ministry of Defence.
Central Departmental decisions by the Ministry of Defence to try to balance the defence budget have reduced its cash-flow requirements in the short-term but at a long-term cost that represents poor value for money for the taxpayer.
This short guide is one of 17 we have produced covering our work on each major government department. It summarises our work on the Ministry of Defence during the last Parliament.
This paper is the result of research undertaken in June 2009 in response to a House of Commons Defence Select Committee request that the NAO identify the views of Non-Governmental Organisations (NGOs) about the Government’s Comprehensive Approach.
This briefing has been prepared for the Defence Committee of the House of Commons to provide an overview of the work and performance of the Ministry of Defence in the financial year 2008-09 and subsequent months.