The performance of the Ministry of Defence 2009-10


Book Description

The Ministry of Defence (MoD) is unaware of the location of radios worth £184 million, and is unable to provide evidence of the existence and condition of assets worth £6.3 billion. This shortfall in accounting is reflected in the decision by the National Audit Office to qualify the MoD accounts for the fourth successive year. The Committee thinks this year's qualification should have been foreseen, given that it was a clear requirement on all Government departments to adopt the relevant reporting standards from 2009-10. It is unsatisfactory that the MoD expects their stock control problems to continue for another two to four years. The report notes the period of intense change that the MoD is going through, and recommends that any cuts to staffing levels must be appropriate for future business need and managed with care. The Committee will study the outcomes of the report of the Defence Reform Unit (ISBN 9780108510663) to ensure that the MoD retains the right skills. This will need to be reflected in decisions on redundancies through voluntary exit and otherwise so that the Department is not left without the right skills and experience required for effective performance. The Committee wishes to be assured that decisions on the scrapping of assets before the end of their useful life have been made on the basis of a sound cost-benefit analysis, taking into account the savings to be achieved and the effect of the loss of capability.




Ministry of Defence annual report and accounts 2008-09


Book Description

This report examines the administration, expenditure, activities and achievements of the MoD during the 2008-09 financial year, as detailed in the Ministry of Defence annual report and accounts 2008-09 (ISBN 9780102962239). It continues a series of inquiries and, indeed, the Committee sees it as cause for concern that the NAO found the need to qualify the MoD's resource accounts for the third consecutive year. Whilst it is acknowledged that capability in theatre must be the Department's first concern, failing to maintain accurate and full information on personnel and to keep track of assets has the potential to threaten the long-term capability of the Department, including operational capability.




Ministry of Defence main estimates 2011-12


Book Description

The Ministry of Defence (MoD) must put into the public domain the full cost of military operations in Afghanistan. This report notes that although there are obvious standing expenses, the Afghan deployment brings with it additional costs in terms of training opportunities cancelled or deferred and equipment wear and tear that will eventually have to be met. The Committee is also disappointed by the Department's inability to provide the detailed information requested about expected write-offs such as Nimrod and the Type 22 Frigate. The MoD was not clear but the Committee deduce that some of the 2010-11 provision for depreciation and write-offs will be carried forward to 2011-12 or even later years. There is also concern that the voluntary redundancy programme has been over-subscribed and that applications (or even resignations) have been received from individuals who might have achieved high command and asks the MoD to show how it will ensure that the voluntary redundancy process does not impact on the future leadership capability and effectiveness of the Armed Services




Making British Defence Policy


Book Description

This book explores the process by which defence policy is made in contemporary Britain and the institutions, actors and conflicting interests which interact in its inception and continuous reformulation. Rather than dealing with the substance of defence policy, this study focuses upon the institutional actors involved in this process. This is a subject which has commanded far more interest from public, Parliament, government and the armed forces since the protracted, bloody and ultimately unsuccessful British military involvement in Iraq and Afghanistan. The work begins with a discussion of two contextual factors shaping policy. The first relates to the impact of Britain’s ‘special relationship’ with the United States over defence and intelligence matters, while the second considers the impact of Britain’s relatively disappointing economic performance upon the funding of British defence since 1945. It then goes on to explore the role and impact of all the key policy actors, from the Prime Minister, Cabinet and core executive, to the Ministry of Defence and its relations with the broader ‘Whitehall village’, and the Foreign Office and Treasury in particular. The work concludes by examining the increasing influence of external policy actors and forces, such as Parliament, the courts, political parties, pressure groups and public opinion. This book will be of much interest to students of British defence policy, security studies, and contemporary military history.




Defence equipment 2010


Book Description

The ability of the Defence Equipment and Support organisation within the Ministry of Defence (MoD) to deliver the equipment programme is overshadowed by the existence of a funding gap which the NAO estimates could be as much as £36 billion over the next ten years. Both the National Audit Office "Major Projects Report 2009" (HC 85-I, session 2009-10, ISBN 9780102963342) and Bernard Gray's "Review of Acquisition" for the MoD have confirmed that the MoD's ten year equipment programme is unaffordable. Furthermore the MoD's practice of delaying projects so as to reduce costs in the early years of a programme is adding to overall procurement costs and so further increases the funding gap. The MoD has apparently made no attempt to calculate the full extent of the costs of delays and it has taken decisions to delay projects without understanding the full implications of those decisions. The report examines: progress on the many key programmes; defence research spending (declining from £540 million in 2007-08 to £471 million in 2009-10 and will decrease further in 2010-11 to £439 million); the response to and implementation of the Gray report; balancing the equipment programme and the use of regular Strategic Defence Reviews to maintain an up-to-date strategic context for the equipment programme; clarifying roles and accountabilities, including better leadership and decision-making; injecting key skills and tools into DE&S.




Ministry of Defence annual report and accounts 2006-07


Book Description

This report analyses the Annual Report and Accounts 2006-07 of the Ministry of Defence (MoD) (published as HC 697, session 2006-07, ISBN 9780102946369). The MoD's assessment of its expected achievements against its six Public Service Agreement (PSA) targets, which run until the end of March 2008, has deteriorated since the previous year's Annual Report and Accounts. At the end of 2007, the MoD did not expect to meet the target relating to generating forces and expects "only partly" to meet targets relating to recruitment and retention, and defence equipment procurement. The failure to meet the target for generating forces is a consequence of the continuing high levels of deployment of the Armed Forces. The Committee is concerned that the Armed Forces have been operating at or above the level of concurrent operations they are resourced and structured to deliver for seven of the last eight years, and for every year since 2002. Achieving manning balance in all three Service continues to be a challenge. Shortages remain within many specialist trades in all three Armed Services, but especially in the Army Medical Service. The report notes the failure to meet harmony guidelines in the Army and the Royal Air Force - another indicator of the pressure on the Armed Forces from the continuing high level of operations - and another target missed by all three services is for ethnic minority recruitment. The MoD continues to experience substantial forecast cost increases on equipment programmes, and the report notes delays in delivering equipment programmes to the planned in-service dates. The MoD faces difficult choices in the face of expected cuts in the defence programme and the management of a streamlining exercise to reduce civilian posts in the headquarters.




The Major Projects Report 2009


Book Description

The current defence programme is unaffordable. The Ministry of Defence (MOD) 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 unlikely, and closing the gap will require bold action as part of the Strategic Defence Review which is expected after the General Election. The MOD has reduced equipment numbers being bought on some projects and taken short-term decisions to slip other projects, but this approach will lead to long-term cost increases. In 2008-09, costs on the 15 major defence projects examined by the NAO increased by £1.2 billion, with two thirds (£733 million) directly due to the decision to slow projects. This approach does not address the fundamental affordability problems, increases through-life costs and represents poor value for money on the specific projects affected. There are signs of improvement in project cost control with innovative decisions being taken to ensure progress but unless the MOD addresses the underlying budgetary and governance issues it will not consistently deliver value for money nor will the operational benefits of expensive new capabilities be available to the Armed Forces in a timely manner or in the numbers originally planned. The current cost of 15 major military projects has risen by £3.6 billion, compared with the expected costs when the investment decisions were taken. The total slippage, averaged over the 14 major projects with in service dates, is over two years per project.




The Strategic Defence and Security Review and the National Security Strategy


Book Description

This report notes mounting concern that UK Armed Forces may be falling below the minimum utility required to deliver the commitments that they are currently being tasked to carry out let alone the tasks they are likely to face between 2015 to 2020 when it is acknowledged that there will be capability gaps. The Committee is concerned that UK Armed Forces will be continually operating at the maximum level envisaged by the Defence Planning Assumptions. The Committee is not convinced that this aspiration can be achieved by co-operation with our allies given the challenges of aligning political with operational needs. The SDSR identified seven military tasks and the Defence Planning Assumptions that underpin them. However the Review fails to show how decisions such as those on the Aircraft Carriers and Nimrod MRA4 will lead to the Armed Forces being able to undertake those military tasks. The Committee has serious concerns over the realisation of what is called "Future Force 2020", the Government's intended shape of the Armed Forces from 2020, particularly as the provision of the necessary resources is only a Government aspiration, not Government policy. The MoD must reform, and ensure substantially improved transparency and control over, its finance and budgetary practices. When committing to undertake new operations the Government should state from the outset where that operation fits in the Defence Planning Assumptions and which of the military tasks it is meeting. The Committee is concerned that the Government seems to have postponed the sensible aspiration of bringing commitments and resources into line, in that it has taken on the new commitment of Libya while reducing the resources available to MoD.




Public Private Partnerships and Constitutional Law


Book Description

Annually, the government commits significant expenditure to a type of public contracts which are known as Public-Private Partnerships (PPPs) or the Private Finance Initiative (PFI). These contracts bind the public purse for decades in sectors such as Health, Defence and Detention, and involve the assignment of a significant role to the private sector in the provision of public services. This book explores the controversial subject of the public accountability of these contracts, and the corresponding large sums of public money involved. It explains how public accountability works for PPPs and the PFI, and it argues that it should be provided as part of the Economic Constitution. Drawing comparative understandings from the UK and the USA constitutional legal traditions, the book investigates public accountability from the perspective of the Economic Constitution, focusing on three accountability criteria - legal, accounting and administrative. In doing so, it provides an analysis which informs both from the perspective of academic research and from that of legal and consulting practice.




Ministry of Defence


Book Description

This report examines whether the Ministry of Defence's (MoD) governance and budgeting arrangements are fit for purpose and whether it understands the serious implications of reprioritising projects after committing to them. The Committee identifies the serious consequences of failings in the governance and budgetary processes. Even using the MoD' own, over-optimistic estimates the defence budget is unaffordable by some £6 billion. The exact size of the gap is dependent on the assumptions made about future funding, but the gap could easily be £36 billion. Intentional decisions to delay some projects have increased total procurement costs and represent economies of the short term and overall are poor value for money on the specific projects affected, the report said. The decisions were taken as part of a wider package to try to make the defence programme affordable over the next few years. They account for two thirds of the £1 billion of cost increases on projects in the last year. Crucially, they mean the Armed Forces will not get the operational benefits of new capabilities as quickly as expected. Decisions to delay projects, change requirements and reduce the numbers of equipments being procured adversely affect the MoD's ability to secure value for money from its commercial partners. The MoD is in the strongest negotiating position with industry before it places a contract. Slowing projects down once started almost inevitably increases their costs and takes pressure off contractors to become more efficient.