|
|
 |
|
|
|
|
|
Ministry of Defence: Major Projects Report 2009 |
|
|
|
Source: UK National Audit Office |
|
|
|
Ref: HC 85-I Session 2009–2010 |
|
|
|
Issued Dec. 15, 2009 |
|
|
|
42 pages in PDF format (Plus Project Summary Sheets 336 pages)
This is the National Audit Office’s annual report on the Ministry of Defence’s arms procurement programs and, as in previous years, it found the current defence programme is unaffordable. While the Ministry of Defence has already reduced the deficit between the defence budget and planned expenditure by £15 billion, 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.
To address the deficit the Ministry of Defence has reduced equipment numbers being bought on some projects and taken short-term decisions to slip other projects. This short-term approach to savings 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 of this increase (£733 million) directly due to the decision to slow projects.
Attempting to save money in this way does not address the fundamental affordability problems, increases through-life costs and represents poor value for money on the specific projects affected.
As part of its annual review of major defence projects, the National Audit Office has found that 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 within service dates, is over two years per project.
The project summary sheets on which the NAO based its analysis are available on its website at www.nao.org.uk/mpr09 (336 pages in PDF format).
|
|
|
|
(PDF format) |
|
|
|
Full text |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
