The NAO Report on MOD Spending - Bad News and Tough Decisions Ahead

The Ministry of Defence has failed to have its equipment plan judged as being affordable for the 3 rd year in a row. Just 10 years after the 2010 SDSR made swingeing cuts to the budget to try and put things back on track, the MOD now faces a deficit of between £3-£13bn in its future plans. This is the damning verdict of the National Audit Office(NAO), whose report into the state of the MOD future equipment plan (EP) makes deeply uncomfortable reading today. The NAO is known for its hard hitting and objective reports, and much of the small print in this is not nice to see. Bluntly put, the NAO is not impressed with how the MOD is running things. How concerned should we be, and what does this mean for the forthcoming Integrated Security Review, and what does it tell us about the state of Defence today? Image by Ministry of Defence; © Crown copyright At its heart the audit concludes that the MOD expects to spend £180bn on defence procurement and support over the next 1...