The Ministry of Defence’s (the Department’s) Equipment Plan will set out its equipment and support budget for the period from 2019 to 2029. It includes spending on equipment already in use and equipment in development. It accounts for more than 40% of the Department’s total spending, meaning stability of the wider defence budget depends on effective management of the Equipment Plan. Last year, forecast costs over ten years exceeded budgets by £7.0 billion, and could be higher in some circumstances.
Since 2012, we have published a commentary alongside the Department’s Equipment Plan, and assessed the robustness of its underlying assumptions. This year, our report will review:
- the Department’s approach to producing the Plan;
- its assumptions about forecast costs and funding for equipment procurement and support; and
- whether the Department is taking timely and informed decisions to sustainably address the affordability gap.