4.1.  Context for the Report

The effectiveness of our military depends critically on the availability of suitable equipment. Around 40% of the MoD's total annual cash spend on defence, c.£12bn p.a., is consumed in ensuring that this equipment is provided, and, as a result, the efficiency of the MoD in delivering value for money from this spending is key to the defence budget (and defence effectiveness) as a whole.

Problems in delivering equipment capability to time and cost estimates are well documented and remain significant in spite of considerable reform of the acquisition processes and organisations within the Department.

With this in mind, the former Secretary of State for Defence, the Rt. Hon. John Hutton MP, commissioned in December 2008 a review of the way in which the MoD acquires military equipment. This report forms the result of that review.