UK has no 'credible plan' to fund Defense Ministry which undermines credibility of armed forces: Report

By Aysu Bicer

LONDON (AA) - The UK's Public Accounts Committee (PAC) issued a scathing assessment Friday that asserted the government's current approach lacks a "credible plan" to adequately fund the Defense Ministry (MoD).

It said that undermines the credibility of the nation's armed forces.

Chancellor Jeremy Hunt pledged that defense spending will rise to 2.5% of Gross Domestic Product (GDP) once "economic conditions allow."

But the PAC contended that the absence of a solid strategy casts doubt on the feasibility of the promise.

In a report Friday, the PAC urged the government to exercise firmer control on defense procurement processes, highlighting the unprecedented disparity between the MoD's budget and its military capability requirements.

"Despite a budget increase of £46.3 billion ($59.7 billion) over the next ten years compared to last year’s Equipment Plan, this year’s Plan’s £16.9bn deficit marks an unmistakable deterioration in its financial position," it said.

The PAC's findings suggest that the deficit could balloon by an additional £12 billion if all branches of the armed forces were to fully account for the costs associated with delivering the government's expected military capabilities.

Attributing part of the financial strain to inflation and adverse foreign exchange movements, the report identifies the MoD's decision to fully fund the nuclear enterprise as a primary driver behind escalating costs.

Expenses at the Defence Nuclear Organisation, responsible for managing the UK's nuclear deterrent, surged by £38.2 billion since last year's plan.

"In an increasingly volatile world, the Ministry of Defense’s lack of a credible plan to deliver fully funded military capability as desired by Government leaves us in an alarming place. But this problem is not new. Year-on-year our committee has seen budget overruns and delays in defense procurement," Dame Meg Hillier MP, chair of the committee, said in a statement.

"We’re disappointed that not only are the same problems we’re used to seeing on display here, but they also appear to be getting worse. Despite a budget increase, this year’s Plan shows a clear deterioration in affordability," he said.