Summary
The Ministry of Defence (the Department) faces a huge challenge in maintaining its estate which, at 1.8% of the UK land mass, is one of the largest in the UK. The overall condition of the estate has been in steady decline for many years as a result of under-investment and we welcome the fact that, after decades of indecision, the Department now has a strategy which identifies the estate it needs and the 25% of the estate it can dispose of by 2040. However, even if the strategy is successfully implemented the Department still faces an estimated shortfall in estate funding of £8.5 billion over the next 30 years. Until the Department resolves the challenges associated with an unsustainably large estate there will be continuing risks to both military capability and value for money. The Department faces many complex and interconnected decisions around the future of its estate. It is essential that these are made on the basis of sound information, take adequate account of the impact on service personnel and their families, and are communicated clearly. Despite the reforms of recent years the Department still does not have a fit for purpose model for managing the estate and faces continued uncertainty until it has restructured its Defence Infrastructure Organisation, renegotiated with its business partner and successfully embedded delegation into the Commands.
20 March 2017