Defence Equipment Plan 2021-2031

Baskar Sundaram
Baskar Sundaram

The Ministry of Defence has published today its updated Equipment Plan 2021-2031.

 Key points include:

  • The Plan reflects a “radical programme” across Defence to modernise its forces and develop capabilities to counter future threats.
  • Over the ten years from 2021/22, the Department plans to spend £238bn on equipment procurement and support. Of this, £230.2 billion is held by TLBs and £7.7 billion is held by head office centrally.
  • The Equipment Plan is still evolving and forecasts will change as delivery schedules and cost estimated develop. One of the risks is the ability to deliver the efficiencies and savings targets described in the Plan.
  • Progress continues in improving the Department’s financial, commercial and project delivery skills and capabilities, including better tools for analysing and forecasting spend.
  • The Department has confidence that it has a plan to deliver the ambitions set out in the Defence Command Paper within the budget available and that it has the necessary flexibility to manage risks.
  • With a clear policy direction from the Integrated Review and a multi-year budget settlement, the Department is seeking to better delegate decision making across the Department. Significantly, decisions to manage cost pressures should be taken at lower levels of the organisation.

The report also breaks down the Defence programme by TLB and the split between procurement and support.

  • Navy Command plan to spend £38.1 billion in the equipment plan over the next ten years. The Navy’s new investment is focused on improving the sustainability, lethality and availability of the fleet and delivering a more modern, high-tech and automated Navy.
  • Army Command plan to spend £41.3 billion in the equipment plan over the next ten years. The Army’s new investment is focussed on making the Army more agile, integrated and lethal.
  • Air Command plan to spend £36.2 billion in the equipment plan over the next ten years. New investment is focussed on making the Royal Air Force one of the most technologically innovative, productive and lethal air forces in the world.
  • UK Strategic Command plan to spend £35.0 billion in the equipment plan over the next ten years. UK Strategic Command’s new investment is focussed on improving integration across domains and developing our digital and cyber capabilities.
  • The Defence Nuclear Organisation plans to spend £58.1 billion in the equipment plan over the next ten years. DNO’s new investment is focussed on the modernisation of the UK’s nuclear warheads.
  • The combined Strategic and Combat Air Programmes currently plan to spend around £21.5 billion in the equipment plan over the next ten years.

The full Plan can be read here.

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