Ministry Of Defence Main Estimates 2007 08

The Main Supply Estimates are the means by which the Government requests resources from Parliament to meet its expenditure plans for the coming financial year, setting out a resource-based Estimate for each Department and for public service pension schemes. The Committee's report focuses on the Estimates for the Ministry of Defence (MoD) for 2007-08 (HCP 438, session 2006-07; ISBN 9780102944969). It identifies no issues which require to be debated by the House of Commons before the House is asked to agree to the Main Estimates, but the report highlights the fact that MoD's request for resources of £33.7 billion in the Main Estimates does not include the expected costs of military operations in Iraq and Afghanistan and so greatly underestimates the total expected cost of the MoD's activities in 2007-08. It argues that the MoD should include estimated costs of military operations in its Main Estimates, instead of waiting for the Supplementary Estimates as it does at present, as it is unacceptable that the MoD is incurring costs on military operations, without parliamentary approval and without even providing Parliament with an outline of the anticipated costs.

Government reply to HCP 835, session 2006-07 (ISBN 9780215034960). The Ministry of Defence Main Estimates are published as HCP 438, session 2006-07 (ISBN 9780102944969)

Government response to HC 885, session 2007-08 (ISBN 9780215521651). The Main Estimates published as HC 479, session 2007-08 (ISBN 9780102953671)

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.

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

This report sets out the work of the Committee during 2007. The report highlights aspects of the Committee's working practices which depart from previous practice or which may otherwise be of interest. In particular it draws attention to the webforum held during its inquiry into Medical Care for the Armed Forces; its taking of evidence outside Westminster, in Birmingham and Edinburgh; and the growing amount of informal activities of the Committee. It also underlines the importance of visits to the Armed Forces on operational deployments. Whilst the MoD was commended for overall timeliness in responding to the Committee's inquiries, in one inquiry: 'UK Defence: commitments and resources'; there was a delay which hindered the progress of the Committee

The mission of the MoD's (Ministry of Defence's) Defence Equipment and Support (DE & S) organisation is to equip and support our Armed Forces for operations now and in the future. Support to current operations in Afghanistan and Iraq has taken priority and the organisation has performed well. The Urgent Operational Requirement (UOR) system remains highly effective in enabling vital equipment to be provided quickly to the two theatres to meet rapidly changing threats, but there are concerns that UORs represent a partial failure to equip our forces for predicted expeditionary operations, and on their effects on the core budget in future years. DE & S' performance in procuring longer-term equipment declined significantly in 2007-08. The forecast costs for the 20 largest defence projects increased by £205 million and the forecast delays increased by some 100 months in the year. The improvements promised by both the long-standing application of the principles of 'smart procurement' and the more recent formation of the DE & S organisation appear not to have materialised. The FRES (Future Rapid Effect System) programme has been a fiasco, being poorly conceived and managed from the outset. The Committee condemns the failure to date to publish an updated version of the Defence Industrial Strategy and considers that its continuing absence increases the risk that the UK Defence Industrial Base will not be able to meet the future requirements of our Armed Forces. Finally, the UK's future military capability depends on the investment made today in Research and Development. Sufficient funding for defence research needs to be ring-fenced and the MoD must recognise the very high priority of research and reverse the recent cut in research spending.

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.