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 MOD supply chain is currently not value for money. It would be much more efficient if directed by a modern information system.
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.
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.
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.
This report looks at how much the Treasury’s Value for Money savings programme has improved value for money across government. The programme aims to achieve government-wide annual savings of £35 billion from 2008-09 to 2010-11.
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 National Audit Office has been unable to conclude that the Ministry of Defence has achieved value for money from the procurement phase of its £10.5 billion private finance deal for the Future Strategic Tanker Aircraft (FSTA), according to a report released today. Despite managing the later stages of the procurement well, the MOD’s ability […]
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.
A report released today by the National Audit Office has found that the clinical treatment and rehabilitation of service personnel seriously injured on military operations are highly effective. The report notes, however, that the rate of illness and minor injury among personnel on operations has almost doubled in three years. Military commanders, and the patients to […]
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.
The current defence programme is unaffordable, according to a report from the National Audit Office. The Ministry of Defence has already reduced the deficit between the defence budget and planned expenditure by £15 billion, but a shortfall of between £6 billion and £36 billion remains. The financial crisis means a substantial increase in funding is […]
The National Audit Office has identified errors in specialist pay, allowances and expenses paid to the Armed Forces via their Payroll and Human Resources system, as well as the inadequacy of evidence to support certain fixed assets and stock balances in the financial statements. For this reason, the Comptroller and Auditor General has qualified his […]
The provision of support for troops in Iraq and Afghanistan is made more difficult because they operate in remote locations and harsh conditions. A report today from the National Audit Office finds that, despite the challenging operational environments, the MOD has successfully delivered around 300,000 personnel and 90,000 tonnes of freight to Iraq and Afghanistan […]
Red Dragon – a project by the Ministry of Defence (MOD), Welsh Assembly Government and the then Welsh Development Agency (the Welsh Authorities) to provide modern aviation repair facilities at St Athan, South Wales – has cost the taxpayer around £113 million, although it was meant to have saved MOD money and protected jobs in […]
A National Audit Office report has found that the condition of 90 per cent of the Service Families Accommodation in Britain is at the two highest of four standards. However a specially-conducted survey has however revealed that, while 52 per cent of Service families feel their Ministry of Defence accommodation is in a good condition, […]
The project to replace the UK’s ageing Anti Air Warfare capability, which is currently provided by the Type 42 destroyer, has suffered significant delays of over two years and costs have escalated to some £6½ billion, up by nearly 30 per cent from initial estimates of £5 billion. More recently, the project has progressed well, […]
Over the past ten years, the Ministry of Defence has introduced a number of reforms to the way it procures defence equipment, but its performance on Major Projects remains variable. As part of its annual report to Parliament, the National Audit Office examined twenty of the largest defence equipment projects. The report found that, during […]
The programme to maintain the UK’s nuclear deterrent beyond the life of the current system, with the introduction into service of the first of a new class of submarines in 2024, is at an early stage, but the Ministry of Defence has made good progress establishing programme management arrangements and engaging stakeholders. The timetable is […]