When asked if the financial problems with the Defence budget were ever likely to change, the Permanent Secretary pointed first to the Department not having a very good understanding of the drivers of inflation with defence projects. Second, and in his view probably most importantly, he highlighted the inherent difficulties of long-term and technical projects, where threats change, and where new capabilities come along that render as potentially obsolete equipment yet to be procured. He commen...

When asked if the financial problems with the Defence budget were ever likely to change, the Permanent Secretary pointed first to the Department not having a very good understanding of the drivers of inflation with defence projects. Second, and in his view probably most importantly, he highlighted the inherent difficulties of long-term and technical projects, where threats change, and where new capabilities come along that render as potentially obsolete equipment yet to be procured. He commented that “there is always going to be…a degree of flux, which is difficult to predict, in a defence procurement programme of this scale and tenor.”15 He Type: conclusion | Number: 8 | 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 Understan