The Ministry of Defence must deliver £10.7 billion of efficiencies over four years, with the annual target rising from £1.4 billion this year to £3.5 billion by 2028-29, according to an answer given in Parliament.
Stuart Anderson, the Conservative member for South Shropshire, asked how the department’s Total Efficiency Commitment was split across the financial years to 2029-30.
Luke Pollard, the Minister for Defence Readiness and Industry, said: “As set out in Table 21 of the Annex to the Defence Investment Plan, the Department’s total efficiency commitment of £10.7 billion is profiled across the four-year period as follows.”
The figures he gave run £1.4 billion in 2026-27, £2.6 billion in 2027-28, £3.5 billion in 2028-29 and £3.2 billion in 2029-30.
The shape of that profile is back-loaded, with more than three fifths of the total falling in the final two years. Departments commonly set targets that way because savings from reorganisation, estate rationalisation and contract renegotiation take time to land, but it also means the heaviest lifting sits beyond the current spending review period and will be inherited by whoever is in post when it arrives.
Efficiency commitments are counted against what the department would otherwise have spent, so they are a mix of cash released for reinvestment and cost growth avoided. In defence they have historically been delivered through headcount reduction in the civilian workforce, renegotiated support contracts, disposal of land and buildings, and changes to how equipment is maintained, with the Defence Equipment and Support organisation and the Defence Infrastructure Organisation carrying much of that load.
The Public Accounts Committee and the National Audit Office have both questioned the department’s record on turning stated efficiencies into real reductions, and the equipment plan has repeatedly relied on savings that were assumed and not yet banked. A commitment of this size sitting inside the Defence Investment Plan means the plan’s affordability depends on them being found. The department has separately committed to growing defence spending to 2.6 per cent of GDP by 2027 and set an ambition of 3 per cent in the next parliament, and the efficiency target is the internal counterpart to that external growth.
Soldiers on exercise shouting “bang bang”.
None of it all adds up. Officers saying the country must be ready to fight. Defence Minister resigns on principle and then as Chancellor refuses to guarantee the funds he demanded. Lame duck defence minister doesn’t say much.
Iranian backed plots being uncovered weekly. War footing, war footing, war footing. Kill ISIS but face a murder charge, and whilst on bail sent back to kill ISIS.
Topped off with National security can’t come at the cost of social security.
Sharpen sticks, if you can find a bolt hole, do so
Oh indeed. HMS Indefensible, here we come. Oars at the ready.
This trick has been played out many times.
Assumptions based on “efficiencies” which are also cuts, which don’t arrive at the levels demanded. Closure of bases is a common one, until down the line it’s deferred when there’s nowhere to move to and no money for the new accommodation that unit needs to move into. Defence then spends itself to oblivion and low and behold finds itself with a black hole.
Thus another round of cuts.
Meanwhile, pieces keep being dropped from the military with no replacement in sight, Shadow and HMS Protector the latest examples.
How much is Defence getting extra again from next year? Minus 10 billion minus black hole minus the DNE eating Defence alive, minus Ukraine money, minus SIA being moved into the 2.5%, minus Chagos payments, equals ?
This was the bit no-one was talking about, but I have mentioned it. This is why, for example, Wildcat goes in 2027 with no direct replacement. NB the AAC Sqns aren’t going, just the airframe. They will be involved in some sort of TBC heavy drone capability. This is why the Army was forced to cancel training, why the reserve was told to stop RSD (training) spend last December.
The government has flat out lied to the public about increasing defence spending. 2.7%? sure, but only because they will now count the security budget. The Deputy PM appeared on the Today Programme claiming they were “investing” over £330Bn in Defence over the Parliament – which is untrue – that includes the entire budget, operations, pensions the lot. It’s not new money. The ONLY new money is the £14Bn in the DIP, which is half of what is actually needed.
To note further, the DWP civil service alone is now larger than the Army.
You hope that all this focus on savings and efficiencies will work in the other direction too, that when the new increased Defence monies comes that thats not wasted either.
Another brain-dead moment from Whitehall, no matter how dangerous the World is becoming. The services need every penny to maintain what we have, let alone for new procurement.