Immediate spending cuts, programme delays, and cancellations need to be made by the UK Ministry of Defence (MoD) to balance its overcommitted equipment procurement budget, the country’s spending watchdog has said.
In an assessment published on 5 November of the ministry’s 10-year equipment procurement programme out to 2028, known as the Equipment Plan, the National Audit Office (NAO) said the MoD faced a funding shortfall of at least a GBP7 billion (USD9.1 billion).
“[The ministry] forecasts GBP193.3 billion of equipment and support costs, against a GBP186.4 billion budget, including a GBP6.2 billion contingency,” said the NAO report . “These costs could vary, and in a worst case scenario, should all the identified risks occur, this gap could grow to GBP14.8 billion.
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