UK to scrap two-year defence budgets

UK to scrap two-year defence budgets

The government is poised to scrap one of its own policy reforms in a move that risks alienating Britain’s defence industry and could lead to fresh delays in big military contracts.

Just four years after introducing a system that gave industry greater planning certainty by setting out how the Ministry of Defence would spend its money over two years, the government is looking at reverting to its former one-year budget cycle

One defence industry executive who was unaware of the proposal said it “ignored how industry works”.

“If they do that, it would in effect abandon [Defence Industrial Strategy],” he added.
in full
there should be 50, 20, 10, 5, 2, and 1 year plans with degrees of certainty for each element of each plan. we should have a plan for CVF replacement (50 year) down to 1 year contracts for ammo and bog roll.

The fact that they are putting it back to one indicates some major cuts ahead
No wonder drayson left. These guys (labour) have no clue about the long term planning requirements of industry.

Consumables on a one year plan.
Minor hardware (boots, body armour) on 2 year plan.
light vehicles on 5 year plan.
medium vehicleson a 10 year plan.
Heavy vehicles, transport aircraft and helos on 20 year plan.
Fast jets, and ships on 50 year plan.

anything else means massive waste of tax-payers money. as industry cannot plan for the resources required.

As you say AJ, abandoning the two year plan suggest that it is going in the bin due to massive underfunding. (big cuts required)

I really have to get some figues together on this. If what I suspect is reflected in the figures, I think it would be interesting reading.

armchair_jihad said:
The fact that they are putting it back to one indicates some major cuts ahead
Probably true but the immediate effect is that it means they can keep more info to their chest on programmes which leads to more denialibility and less political hassle when they decide to make cuts to them.

It is easy to see that it will annoy industry too. An unintended consequence of this policy change? Expect prices to go up as industry are required to run longer term programmes at what they will perceive to be at higher risk - exactly what the MoD doesn't need.

It all smacks of crisis management rather than pragmatic, longer term planning - pretty much sums up New Labour really....... :roll:

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