The Equipment Plan 2018 to 2028
Published on:This report assesses the robustness of the Ministry of Defence’s financial data and assumptions for its Equipment Plan 2018-2028.
This report assesses the robustness of the Ministry of Defence’s financial data and assumptions for its Equipment Plan 2018-2028.
The affordability of the Ministry of Defence’s Equipment Plan.
The Cabinet Office estimates that government commits around £130 billion to grants each year – nearly 20% of all government spend. Grants are an important delivery mechanism for policy across government, not just centrally but also in agencies, local authorities and other bodies across the public sector.
Annual spending on consultants and temporary staff has reduced by £1.5 billion since 2010 when strict spending controls were introduced. However, annual spend is now increasing once more and is between £400 million and £600 million higher than in 2011-12.
Government’s programme to transfer back-office functions to two shared service centres has made savings but has not achieved value for money to date.
Staff numbers and costs have reduced significantly in the last five years. Not enough planning, however, has gone into making sure that the reductions are sustainable.
The risks to the affordability of the Ministry of Defence Equipment Plan are greater than at any point since reporting began in 2012.
HMRC aimed to move more customers online thereby reducing staff costs but significant numbers of staff were let go before technical improvements were completed leading to a collapse in service quality in 2015. Services have since improved.
The welfare cap is encouraging a greater understanding of spending on some benefits and tax credits across government, but it is important that processes for managing the cap are reliable.
The BBC’s cost reduction programme has so far delivered value for money. However, the need to make further savings from productivity improvements will involve more challenging and potentially disruptive changes to structures and ways of working.
An interactive summary of the NAO’s presentations at Civil Service Live events, 2015, on four pervasive issues blocking public service improvement.
The Public Bodies Reform Programme is making good progress in abolishing or merging public bodies and reducing their costs, but triennial reviews of remaining bodies need to be much more effective.
Fiscal pressure on government departments is set to continue through the next Parliament, with citizen expectations continuing to rise. With the ‘more for less’ challenge continuing indefinitely and an increasingly complex public sector landscape, a strong and integrated finance function across government is crucial.
The MoD’s Equipment Plan appears more stable than last year and progress has been maintained, but the Department will need to remain vigilant with regard to future cost increases.
Stronger financial management will be needed in departments if they are to speed up the restructuring of service delivery.
The Nuclear Decommissioning Authority’s systems for recording and challenging claimed savings at Sellafield give moderate assurance of reported overall savings since 2009-10.
Local authorities have worked hard to manage reductions in government funding, but the DCLG needs to be better informed about the situation across England.
Local authorities have worked hard to manage reductions in government funding, but the DCLG needs to be better informed about the situation across England.
The Cabinet Office will have to work with other government departments to ensure that the full benefits of its shared services strategy are realised.
We publish our examination of the assumptions made by the MOD in its annual statement of its 10-year equipment plan.