While pointing out that this was also a problem encountered by other countries, the Department acknowledged that it did not have a good understanding of the unique factors that drive inflation on defence projects, and that there was work to be done to better understand whether there are better ways of managing or predicting it.77 Defence projects are often long-term, complex and involve new cutting-edge technologies. For example, it is likely to be buying Lightning II jets for another 20 year...

While pointing out that this was also a problem encountered by other countries, the Department acknowledged that it did not have a good understanding of the unique factors that drive inflation on defence projects, and that there was work to be done to better understand whether there are better ways of managing or predicting it.77 Defence projects are often long-term, complex and involve new cutting-edge technologies. For example, it is likely to be buying Lightning II jets for another 20 years and will need to constantly 68 Qq 4, 74 69 Q 10 70 C&AG’s report, para 19 71 Qq 10, 13 72 C&AG’s report, para 16 73 C&AG’s report, para 1.35 74 Q 35 75 Type: conclusion | Number: 27 | Response status: under_consideration Government response: 4.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 4.2 The department will write to the Committee alongside the department’s annual Equipment Plan report which will be published in Autumn 2021. 4.3 Underst