Author: Great Britain: Parliament: House of Commons: International Development Committee
Publisher: The Stationery Office
ISBN: 9780215053183
Category : Business & Economics
Languages : en
Pages : 86
Book Description
About two-thirds of DFID's expenditure in 2011-12, including nearly 40% of its bilateral spending, went through multilateral organisations even though they have higher administrative costs. This represents a major change in recent years and has been accompanied by a decline in direct aid to recipient Governments. DFID argues that the change is not a reflection of its need to spend money quickly, but a result of the reduced need for budget support in countries with rising tax bases and improved financial management, as well as its focus on fragile states. The DFID needs to ensure that it has thoroughly examined other options such as greater use of local NGOs and sector budget support. DFID has switched expenditure from low income to middle income countries, in part because several countries with a large number of poor people have recently graduated to middle-income status. Policy towards middle income countries varies and DFID needs establish and make public the criteria it will use to inform decisions of when and how it should cease to provide aid. DFID should also consider establishing a Development Bank - that could offer concessional loans alongside grant aid and would free from the constraint of having to ensure that cash was spent by the end of the financial year. Staffing also may still not be sufficient to oversee the huge expenditure of UK taxpayers' money undertaken by multilaterals. MPs remain concerned that DFID's has ended its bilateral programme in one of the world's poorest countries, Burundi, and is urging the new Secretary of State to re-instate it.
Department for International Development's Annual Report and Accounts 2011-12
Author: Great Britain: Parliament: House of Commons: International Development Committee
Publisher: The Stationery Office
ISBN: 9780215053183
Category : Business & Economics
Languages : en
Pages : 86
Book Description
About two-thirds of DFID's expenditure in 2011-12, including nearly 40% of its bilateral spending, went through multilateral organisations even though they have higher administrative costs. This represents a major change in recent years and has been accompanied by a decline in direct aid to recipient Governments. DFID argues that the change is not a reflection of its need to spend money quickly, but a result of the reduced need for budget support in countries with rising tax bases and improved financial management, as well as its focus on fragile states. The DFID needs to ensure that it has thoroughly examined other options such as greater use of local NGOs and sector budget support. DFID has switched expenditure from low income to middle income countries, in part because several countries with a large number of poor people have recently graduated to middle-income status. Policy towards middle income countries varies and DFID needs establish and make public the criteria it will use to inform decisions of when and how it should cease to provide aid. DFID should also consider establishing a Development Bank - that could offer concessional loans alongside grant aid and would free from the constraint of having to ensure that cash was spent by the end of the financial year. Staffing also may still not be sufficient to oversee the huge expenditure of UK taxpayers' money undertaken by multilaterals. MPs remain concerned that DFID's has ended its bilateral programme in one of the world's poorest countries, Burundi, and is urging the new Secretary of State to re-instate it.
Publisher: The Stationery Office
ISBN: 9780215053183
Category : Business & Economics
Languages : en
Pages : 86
Book Description
About two-thirds of DFID's expenditure in 2011-12, including nearly 40% of its bilateral spending, went through multilateral organisations even though they have higher administrative costs. This represents a major change in recent years and has been accompanied by a decline in direct aid to recipient Governments. DFID argues that the change is not a reflection of its need to spend money quickly, but a result of the reduced need for budget support in countries with rising tax bases and improved financial management, as well as its focus on fragile states. The DFID needs to ensure that it has thoroughly examined other options such as greater use of local NGOs and sector budget support. DFID has switched expenditure from low income to middle income countries, in part because several countries with a large number of poor people have recently graduated to middle-income status. Policy towards middle income countries varies and DFID needs establish and make public the criteria it will use to inform decisions of when and how it should cease to provide aid. DFID should also consider establishing a Development Bank - that could offer concessional loans alongside grant aid and would free from the constraint of having to ensure that cash was spent by the end of the financial year. Staffing also may still not be sufficient to oversee the huge expenditure of UK taxpayers' money undertaken by multilaterals. MPs remain concerned that DFID's has ended its bilateral programme in one of the world's poorest countries, Burundi, and is urging the new Secretary of State to re-instate it.
Department for International Development annual report and resource accounts 2010-11 and business plan 2011-15
Author: Great Britain: Parliament: House of Commons: International Development Committee
Publisher: The Stationery Office
ISBN: 9780215042910
Category : Business & Economics
Languages : en
Pages : 76
Book Description
While DFID's total budget is increasing, the Department will both restrict operating costs to 2% by 2014-15 and reduce its administrative costs by a third in real terms, from £128 million in 2010-11 to £94 million by 2014-15. This report warns that capping operational costs and staff numbers may not reduce overall costs or improve effective delivery of development assistance. The International Development Committee also raises concerns that cost pressures are driving DFID to use consultants to deliver its programmes, rather than in-house expertise. The Department spends £450 million on technical cooperation per year. Much of this is good work, yet it was unclear exactly what this money was spent on, or how effective it was and the extent to which external providers were used. DFID needs to improve its assessment of which projects and services it should use consultants for; and assess more carefully the use of consultants to manage the Department's own delivery programmes. In its efforts to reduce administrative spending DFID might be 'exporting' these costs to other organisations, including NGOs and multilateral aid organisations, with higher real administration costs. The Department should assess the best and most effective way to deliver development assistance as it may be able to do it more cheaply and effectively than external organisations. The report recommends that the Department improves its tracking of and reporting on the total cost of administering its aid programme with the aim of quantifying how much aid actually ends up reaching recipients.
Publisher: The Stationery Office
ISBN: 9780215042910
Category : Business & Economics
Languages : en
Pages : 76
Book Description
While DFID's total budget is increasing, the Department will both restrict operating costs to 2% by 2014-15 and reduce its administrative costs by a third in real terms, from £128 million in 2010-11 to £94 million by 2014-15. This report warns that capping operational costs and staff numbers may not reduce overall costs or improve effective delivery of development assistance. The International Development Committee also raises concerns that cost pressures are driving DFID to use consultants to deliver its programmes, rather than in-house expertise. The Department spends £450 million on technical cooperation per year. Much of this is good work, yet it was unclear exactly what this money was spent on, or how effective it was and the extent to which external providers were used. DFID needs to improve its assessment of which projects and services it should use consultants for; and assess more carefully the use of consultants to manage the Department's own delivery programmes. In its efforts to reduce administrative spending DFID might be 'exporting' these costs to other organisations, including NGOs and multilateral aid organisations, with higher real administration costs. The Department should assess the best and most effective way to deliver development assistance as it may be able to do it more cheaply and effectively than external organisations. The report recommends that the Department improves its tracking of and reporting on the total cost of administering its aid programme with the aim of quantifying how much aid actually ends up reaching recipients.
Department for International Development's Performance in 2012-13: Departmental Annual Report 2012-13 - HC 693
Author: Great Britain: Parliament: House of Commons: International Development Committee
Publisher: The Stationery Office
ISBN: 0215071751
Category : Business & Economics
Languages : en
Pages : 48
Book Description
This report is the International Development Committee's annual review of UK aid programmes and the administration of the Department for International Development (DFID). The Committee finds that field work overseas should be given greater priority and Ministers must explain UK spending on humanitarian projects more clearly. DFID should not provide funds to support disasters in middle income countries by raiding bilateral development programmes in low income countries. Other wealthy OECD countries must play their part in providing humanitarian assistance. DFID should set out annually its provisional budget for humanitarian relief, what is held as contingencies for unpredictable events and how it will be deployed if not called upon. There has also been a decline in DFID's spending on budget support, the consequences of which should be assessed. £1,075 million of DFID's bilateral expenditure is spent through multilaterals and private contractors. DFID has put in place a number of changes to improve the value for money provided by spending through and should report on their effectiveness. The Committee is also worried that the Department actually spends 40% of its budget in the last two months of the year, which raises questions about the smooth running of management and planning processes. DFID staff should have longer postings overseas (normally a minimum of four years) so that they can develop a deeper understanding of the culture and politics of the country they are working in and engage more effectively with the country's politicians.
Publisher: The Stationery Office
ISBN: 0215071751
Category : Business & Economics
Languages : en
Pages : 48
Book Description
This report is the International Development Committee's annual review of UK aid programmes and the administration of the Department for International Development (DFID). The Committee finds that field work overseas should be given greater priority and Ministers must explain UK spending on humanitarian projects more clearly. DFID should not provide funds to support disasters in middle income countries by raiding bilateral development programmes in low income countries. Other wealthy OECD countries must play their part in providing humanitarian assistance. DFID should set out annually its provisional budget for humanitarian relief, what is held as contingencies for unpredictable events and how it will be deployed if not called upon. There has also been a decline in DFID's spending on budget support, the consequences of which should be assessed. £1,075 million of DFID's bilateral expenditure is spent through multilaterals and private contractors. DFID has put in place a number of changes to improve the value for money provided by spending through and should report on their effectiveness. The Committee is also worried that the Department actually spends 40% of its budget in the last two months of the year, which raises questions about the smooth running of management and planning processes. DFID staff should have longer postings overseas (normally a minimum of four years) so that they can develop a deeper understanding of the culture and politics of the country they are working in and engage more effectively with the country's politicians.
Department for International Development annual report & resource accounts 2009 - 10
Author: Great Britain: Parliament: House of Commons: International Development Committee
Publisher: The Stationery Office
ISBN: 9780215556240
Category : Political Science
Languages : en
Pages : 92
Book Description
In the 2010 Comprehensive Spending Review the Coalition Government announced its decision to achieve the internationally agreed target of providing 0.7 percent of Gross National Income as ODA from 2013. This will involve spending an additional 2.5 billion pounds in 2013-14 to make the total DFID budget 11.3 billion pounds in that year. There will be a large increase in spending on fragile and conflict affected states and it will be difficult to ensure that every pound is well spent in such war-torn environments. When scrutinising DFID's accounts the MPs were also surprised to discover that the Pope's visit was paid for in part by money supposed to be for overseas development aid (ODA). The Committee expects a response from the Government as to what the £1.85 million, transferred to the Foreign Office for the papal visit, was spent on and an explanation as to how this was ODA compliant. The Comprehensive Spending Review (CSR) announced reductions in DFID's running costs to 2% of the total budget. If achieved, this would make DFID the most cost-efficient development organisation in the world.This is to be achieved by a large reduction in back office administration costs (which excludes front-line staff) of £34 million over the CSR period. The International Development Committee supports the proposals to make savings in back office staff, but the MPs are warning that Ministers must ensure that reduced administration budgets do not affect the ability to deliver aid programmes on the ground. While declining as a share of total costs, running costs will increase in real terms over the next four years because the total budget will rise so much.
Publisher: The Stationery Office
ISBN: 9780215556240
Category : Political Science
Languages : en
Pages : 92
Book Description
In the 2010 Comprehensive Spending Review the Coalition Government announced its decision to achieve the internationally agreed target of providing 0.7 percent of Gross National Income as ODA from 2013. This will involve spending an additional 2.5 billion pounds in 2013-14 to make the total DFID budget 11.3 billion pounds in that year. There will be a large increase in spending on fragile and conflict affected states and it will be difficult to ensure that every pound is well spent in such war-torn environments. When scrutinising DFID's accounts the MPs were also surprised to discover that the Pope's visit was paid for in part by money supposed to be for overseas development aid (ODA). The Committee expects a response from the Government as to what the £1.85 million, transferred to the Foreign Office for the papal visit, was spent on and an explanation as to how this was ODA compliant. The Comprehensive Spending Review (CSR) announced reductions in DFID's running costs to 2% of the total budget. If achieved, this would make DFID the most cost-efficient development organisation in the world.This is to be achieved by a large reduction in back office administration costs (which excludes front-line staff) of £34 million over the CSR period. The International Development Committee supports the proposals to make savings in back office staff, but the MPs are warning that Ministers must ensure that reduced administration budgets do not affect the ability to deliver aid programmes on the ground. While declining as a share of total costs, running costs will increase in real terms over the next four years because the total budget will rise so much.
The Delusion of Knowledge Transfer
Author: Susanne Koch
Publisher: African Books Collective
ISBN: 1928331416
Category : Social Science
Languages : en
Pages : 398
Book Description
With the rise of the knowledge for development paradigm, expert advice has become a prime instrument of foreign aid. At the same time, it has been object of repeated criticism: the chronic failure of technical assistance a notion under which advice is commonly subsumed has been documented in a host of studies. Nonetheless, international organisations continue to send advisors, promising to increase the effectiveness of expert support if their technocratic recommendations are taken up. This book reveals fundamental problems of expert advice in the context of aid that concern issues of power and legitimacy rather than merely flaws of implementation. Based on empirical evidence from South Africa and Tanzania, the authors show that aid-related advisory processes are inevitably obstructed by colliding interests, political pressures and hierarchical relations that impede knowledge transfer and mutual learning. As a result, recipient governments find themselves caught in a perpetual cycle of dependency, continuously advised by experts who convey the shifting paradigms and agendas of their respective donor governments. For young democracies, the persistent presence of external actors is hazardous: ultimately, it poses a threat to the legitimacy of their governments if their policy-making becomes more responsive to foreign demands than to the preferences and needs of their citizens.
Publisher: African Books Collective
ISBN: 1928331416
Category : Social Science
Languages : en
Pages : 398
Book Description
With the rise of the knowledge for development paradigm, expert advice has become a prime instrument of foreign aid. At the same time, it has been object of repeated criticism: the chronic failure of technical assistance a notion under which advice is commonly subsumed has been documented in a host of studies. Nonetheless, international organisations continue to send advisors, promising to increase the effectiveness of expert support if their technocratic recommendations are taken up. This book reveals fundamental problems of expert advice in the context of aid that concern issues of power and legitimacy rather than merely flaws of implementation. Based on empirical evidence from South Africa and Tanzania, the authors show that aid-related advisory processes are inevitably obstructed by colliding interests, political pressures and hierarchical relations that impede knowledge transfer and mutual learning. As a result, recipient governments find themselves caught in a perpetual cycle of dependency, continuously advised by experts who convey the shifting paradigms and agendas of their respective donor governments. For young democracies, the persistent presence of external actors is hazardous: ultimately, it poses a threat to the legitimacy of their governments if their policy-making becomes more responsive to foreign demands than to the preferences and needs of their citizens.
Understanding Influence
Author: Thomas Waldman
Publisher: Routledge
ISBN: 1317004876
Category : Political Science
Languages : en
Pages : 280
Book Description
The overarching objective of this book is to analyse the manner in which statebuilding-oriented research has and can influence policies in fragile, post-conflict environments. Large-scale, externally-assisted statebuilding is a relatively new and distinct foreign policy domain having risen to the forefront of the international agenda as the negative consequences of state weakness have been repeatedly revealed in the form of entrenched poverty, regional instability and serious threats to international security. Despite the increasing volume of research on statebuilding, the use and uptake of findings by those involved in policymaking remains largely under-examined. As such, the main themes running through the book relate to issues of research influence, use and uptake into policy. It grapples with problems associated with decision-making dynamics, knowledge management and the policy process and draws on concepts and analytical models developed within the public policy and research utilisation literature. This book will be of great interest to researchers, knowledge managers and policymakers working in the fields of post-war reconstruction, statebuilding, fragile states, stabilisation, conflict and development.
Publisher: Routledge
ISBN: 1317004876
Category : Political Science
Languages : en
Pages : 280
Book Description
The overarching objective of this book is to analyse the manner in which statebuilding-oriented research has and can influence policies in fragile, post-conflict environments. Large-scale, externally-assisted statebuilding is a relatively new and distinct foreign policy domain having risen to the forefront of the international agenda as the negative consequences of state weakness have been repeatedly revealed in the form of entrenched poverty, regional instability and serious threats to international security. Despite the increasing volume of research on statebuilding, the use and uptake of findings by those involved in policymaking remains largely under-examined. As such, the main themes running through the book relate to issues of research influence, use and uptake into policy. It grapples with problems associated with decision-making dynamics, knowledge management and the policy process and draws on concepts and analytical models developed within the public policy and research utilisation literature. This book will be of great interest to researchers, knowledge managers and policymakers working in the fields of post-war reconstruction, statebuilding, fragile states, stabilisation, conflict and development.
Department for Education
Author: Great Britain: Parliament: House of Commons: Committee of Public Accounts
Publisher: The Stationery Office
ISBN: 9780215056917
Category : Education
Languages : en
Pages : 56
Book Description
Academies are funded directly by central government, directly accountable to the Department for Education, and outside local authority control. They have greater financial freedoms than maintained schools. By September 2012 the number of open academies had increased tenfold, from 203 to 2,309. Academies are the Department's chosen vehicle for school reform, but increasing schools' autonomy and removing them from local authority control gives the Department responsibility for ensuring value for money. The Department has incurred significant costs from the complex and inefficient system it has used for funding the Academies Programme and its oversight of academies has had to play catch-up with the rapid growth in academy numbers. In the two years from April 2010 to March 2012, the Department spent £8.3 billion on Academies; £1 billion of this was an additional cost to the Department not originally budgeted for this purpose, some of which was not recovered from local authorities. The Department must improve the efficiency of its funding mechanisms and stop the growth in other costs. Furthermore, the Department has yet to establish effective school-level financial accountability for academies operating within chains. What will determine whether the Department ultimately achieves value for money is academies' impact on educational performance relative to the investment from the taxpayer. If the Department is to be held properly to account for its spending on academies, it must insist that every Academy Trust provides it with data showing school-level expenditure, including per-pupil costs, and with a level of detail comparable to that available for maintained schools.
Publisher: The Stationery Office
ISBN: 9780215056917
Category : Education
Languages : en
Pages : 56
Book Description
Academies are funded directly by central government, directly accountable to the Department for Education, and outside local authority control. They have greater financial freedoms than maintained schools. By September 2012 the number of open academies had increased tenfold, from 203 to 2,309. Academies are the Department's chosen vehicle for school reform, but increasing schools' autonomy and removing them from local authority control gives the Department responsibility for ensuring value for money. The Department has incurred significant costs from the complex and inefficient system it has used for funding the Academies Programme and its oversight of academies has had to play catch-up with the rapid growth in academy numbers. In the two years from April 2010 to March 2012, the Department spent £8.3 billion on Academies; £1 billion of this was an additional cost to the Department not originally budgeted for this purpose, some of which was not recovered from local authorities. The Department must improve the efficiency of its funding mechanisms and stop the growth in other costs. Furthermore, the Department has yet to establish effective school-level financial accountability for academies operating within chains. What will determine whether the Department ultimately achieves value for money is academies' impact on educational performance relative to the investment from the taxpayer. If the Department is to be held properly to account for its spending on academies, it must insist that every Academy Trust provides it with data showing school-level expenditure, including per-pupil costs, and with a level of detail comparable to that available for maintained schools.
The London 2012 Olympic Games and Paralympic Games
Author: Great Britain: Parliament: House of Commons: Committee of Public Accounts
Publisher: The Stationery Office
ISBN: 9780215056818
Category : Business & Economics
Languages : en
Pages : 56
Book Description
The success of the London 2012 Games demonstrates that it is possible for government departments to work together and with other bodies effectively to deliver complex programmes. The £9.298 billion Public Sector Funding Package for the Games is set to be underspent. The Department is also committed to reflect on what more it can do to present costs in a way that goes further and brings out those costs associated with the Games and the legacy that are not covered by the Funding Package. The notable blemish on planning for the Games was venue security. Also, during the Games a large number of accredited seats went unused at events for which the public demand for tickets could not be met. International sports bodies and media organisations wield a lot of power but demands should be challenged. It is now up to the London Legacy Development Corporation to attract investment in the Olympic Park and generate the promised returns to funders. There is concern that the lottery good causes do not have any clear influence over decisions about future sales, despite these decisions directly affecting how much will be available to them and when. On the wider legacy, we look to the Cabinet Office to provide strong leadership to ensure delivery of the longer term benefits. The Government also needs to do all it can to learn and disseminate lessons and to encourage volunteering opportunities both within sport and beyond
Publisher: The Stationery Office
ISBN: 9780215056818
Category : Business & Economics
Languages : en
Pages : 56
Book Description
The success of the London 2012 Games demonstrates that it is possible for government departments to work together and with other bodies effectively to deliver complex programmes. The £9.298 billion Public Sector Funding Package for the Games is set to be underspent. The Department is also committed to reflect on what more it can do to present costs in a way that goes further and brings out those costs associated with the Games and the legacy that are not covered by the Funding Package. The notable blemish on planning for the Games was venue security. Also, during the Games a large number of accredited seats went unused at events for which the public demand for tickets could not be met. International sports bodies and media organisations wield a lot of power but demands should be challenged. It is now up to the London Legacy Development Corporation to attract investment in the Olympic Park and generate the promised returns to funders. There is concern that the lottery good causes do not have any clear influence over decisions about future sales, despite these decisions directly affecting how much will be available to them and when. On the wider legacy, we look to the Cabinet Office to provide strong leadership to ensure delivery of the longer term benefits. The Government also needs to do all it can to learn and disseminate lessons and to encourage volunteering opportunities both within sport and beyond
Ministry of Defence Annual Report and Accounts 2012-13
Author: Great Britain: Parliament: House of Commons: Defence Committee
Publisher: The Stationery Office
ISBN: 9780215054647
Category : Technology & Engineering
Languages : en
Pages : 72
Book Description
For the sixth successive year, the Ministry of Defence Accounts were qualified. The Qualifications covered non-compliance with international reporting standards on the treatment of some contracts; lack of audit evidence on the valuation of inventory (worth some £3 billion) and of capital spares (worth some £7 billion); and on the regularity of the Accounts because of the failure to obtain approval for the remuneration package of the Chief of Defence Materiel. The MoD was also five months late in submitting its audited accounts to Parliament. The National Audit Office had found errors in its sample examination of accruals and so the MoD decided to resolve these problems before submitting the accounts. The MoD said they did not have the necessary expertise to manage the financial complexity that featured in the implementation of the Strategic Defence and Security Review so sought assistance. The MoD should ensure its people have the right skills to deal with all financial problems so that they do not need to bring in expensive external accountants. There is also concern about the MoD's reluctance to estimate the full costs of its operations in Afghanistan, Iraq and Libya. The NAO did not consider that the MoD has adequate information, especially with respect to recording the cost of its activities and outputs, to run its business effectively. The MoD should set out its commitment to improving its management information. It is also vital that defence spending remains at more than 2 per cent of GDP in line with the UK's NATO commitment.
Publisher: The Stationery Office
ISBN: 9780215054647
Category : Technology & Engineering
Languages : en
Pages : 72
Book Description
For the sixth successive year, the Ministry of Defence Accounts were qualified. The Qualifications covered non-compliance with international reporting standards on the treatment of some contracts; lack of audit evidence on the valuation of inventory (worth some £3 billion) and of capital spares (worth some £7 billion); and on the regularity of the Accounts because of the failure to obtain approval for the remuneration package of the Chief of Defence Materiel. The MoD was also five months late in submitting its audited accounts to Parliament. The National Audit Office had found errors in its sample examination of accruals and so the MoD decided to resolve these problems before submitting the accounts. The MoD said they did not have the necessary expertise to manage the financial complexity that featured in the implementation of the Strategic Defence and Security Review so sought assistance. The MoD should ensure its people have the right skills to deal with all financial problems so that they do not need to bring in expensive external accountants. There is also concern about the MoD's reluctance to estimate the full costs of its operations in Afghanistan, Iraq and Libya. The NAO did not consider that the MoD has adequate information, especially with respect to recording the cost of its activities and outputs, to run its business effectively. The MoD should set out its commitment to improving its management information. It is also vital that defence spending remains at more than 2 per cent of GDP in line with the UK's NATO commitment.
Ministry of Defence
Author: Great Britain: Parliament: House of Commons: Committee of Public Accounts
Publisher: Stationery Office
ISBN: 9780215057419
Category : Technology & Engineering
Languages : en
Pages : 40
Book Description
The Ministry of Defence has now reported on the affordability of its ten-year forward plan to purchase and support military equipment (the Equipment Plan) totalling some £159 billion, as well as its progress on delivering its largest projects in 2012. The Department has made a good start but there are concerns about over-optimistic assumptions, the completeness and robustness of support cost estimates, and risks to capability. The affordability of the Plan is based on an agreement between the Department and HM Treasury that it will receive a one per cent annual increase in its equipment budget over the period from 2015-16 to 2020-21. If this is now not achieved in the current fiscal circumstances then the current plan may well be unaffordable. The addition of a contingency provision of £4.8 billion is a positive step, however this may not be sufficient to absorb cost growth. In addition, the Department lacks a robust understanding of the support costs, and the associated risks, including the size of the budget that may be required to recover equipment from Afghanistan. The Department also faces a particular challenge in delivering projects to agreed timescales. Ultimately, the Department bears the risk of these delays in terms of military capability and we need greater transparency on these risks and how they are mitigated. This includes the Department being clear on the impact on capability if the £8 billion that is currently unallocated in the budget cannot be used for purchasing new equipment because it is needed to absorb cost growth
Publisher: Stationery Office
ISBN: 9780215057419
Category : Technology & Engineering
Languages : en
Pages : 40
Book Description
The Ministry of Defence has now reported on the affordability of its ten-year forward plan to purchase and support military equipment (the Equipment Plan) totalling some £159 billion, as well as its progress on delivering its largest projects in 2012. The Department has made a good start but there are concerns about over-optimistic assumptions, the completeness and robustness of support cost estimates, and risks to capability. The affordability of the Plan is based on an agreement between the Department and HM Treasury that it will receive a one per cent annual increase in its equipment budget over the period from 2015-16 to 2020-21. If this is now not achieved in the current fiscal circumstances then the current plan may well be unaffordable. The addition of a contingency provision of £4.8 billion is a positive step, however this may not be sufficient to absorb cost growth. In addition, the Department lacks a robust understanding of the support costs, and the associated risks, including the size of the budget that may be required to recover equipment from Afghanistan. The Department also faces a particular challenge in delivering projects to agreed timescales. Ultimately, the Department bears the risk of these delays in terms of military capability and we need greater transparency on these risks and how they are mitigated. This includes the Department being clear on the impact on capability if the £8 billion that is currently unallocated in the budget cannot be used for purchasing new equipment because it is needed to absorb cost growth