Introduction
Since 2012, the Department has published an annual Statement on the affordability of its 10-year Equipment Plan (the Plan). It began to report this after a period of poor financial management, during which a significant gap had developed between its forecast funding and the cost of the defence programme as a whole. The Department’s Plan forecasts spend for 10 years and is updated annually. For the 10-year period 1 April 2017 to 31 March 2027, the Department has set an equipment budget of £179.7 billion made up of equipment procurement (£84.8 billion), and support (£88.9 billion) budgets, and a central contingency provision (£6 billion). Managing the equipment and support budget effectively is critical to maintaining the stability of the wider defence budget and ensuring that the Armed Forces have the equipment they need to meet their objectives. The Plan accounts for over 40% of the entire Defence budget.
Published: 11 May 2018