Following a National Audit Office report on the Ministry of Defence's Equipment Plan, James took part in a Public Accounts Committee session scrutinising the proposals.
The hearing follows a government commitment to increase the MOD budget by £16.5 billion additional funding over four years. James pressed officials on their plans to deliver £7 billion of planned savings in the equipment programme, raised issues regarding proposed workforce changes, and challenged the level of spending on external consultants.
In its report the NAO concluded that "The new multi-year spending settlement gives the Department a rare opportunity to break old habits and set the Plan on course to be affordable. Despite some recent improvements, the Department continues to have to take short-term decisions to balance the books, restricting the delivery of equipment and reducing value for money. Some key arrangements and capabilities which need to be in place for an affordable and cost-effective Plan are still absent. These include: a consistent basis of preparation and reporting, the right incentives in place in the budgeting process for TLBs to focus on long term value for money rather than short term fixes, sufficient financial skills and a long‑term approach to efficiencies and savings. To build confidence in the Plan, the Department also needs to deliver promised reform of the management of equipment procurement and support."
