5.9.1.  Key observations

•  The current UK defence planning framework is seriously in need of updating, in light of the changing environment over the past decade.

•  Defence reviews involve difficult and often unpopular choices to be made by government but nonetheless need to be done regularly.

•  The UK's level of ambition around capability is significantly out-of-balance with resources available on any realistic short-, medium- or long-term basis.

•  Defence planning has to be conducted in tandem with costing of the options. Historically it has proved too easy to over-commit to capability because the affordability issues only materialise further out.

•  Government funding commitments (e.g., 3 year CSR cycles) are too short-term for defence capability strategic planning, although given the current affordability issues with the Equipment Plan, longer term commitments are unlikely to be sanctioned.

•  The current system of funding and precise in-year cash targets fail recognise the inherent variability that arises in capital expenditure programmes; this forces value-destroying short-term cash management manipulation to hit targets.