6.7.2. Analysis of the current ESP

PR09* Equipment Support Plan by primary Capability Manager**

Note: Includes the cost of the future deterrent, which is subject to separate funding arrangements with the Treasury on the basis (announced in the 2006 White Paper) that the cost of the deterrent will not be at the expense of the conventional capabilities required by the Armed Forces.

Segmentation presented on basis of pre-April 09 organisational structure;

*PR09 is after options and manual adjustments (as at 28th of May), but is not the final EPP;

** Capability for which the majority of the support spend is attributed (i.e. the Capability responsible for the spend)

Source: CapEP; Review team analysis

Figure 6-4: PR09 Equipment Support Plan spend by Primary HoC and Capability Sponsor61

Overall plans suggest that the rate of spend on the ESP will increase at an accelerating rate through the ten years of the programme. In particular, the plan incorporates an increase of c.£500m between the fourth year of the plan (the last year in which FLCs are responsible for the support of in-service equipment) and the fifth year (which is entirely programmed by the Capability Sponsor). Over £250m of this increase comes from in-service equipment. This suggests that, where FLC decision-makers are able to trade off spend in one area (equipment support) against others (e.g., manpower) that are under their control, equipment costs may be controlled more tightly than would otherwise be the case.

Spend across the equipment support programme is split fairly evenly between the four main areas of capability which are forecast to grow at broadly similar rates in the long term. The support costs of the Information Superiority area are the smallest of the major capability areas but fastest growing in the long term, whereas just less than 10% of the ESP is dedicated to supporting the three Naval Bases which are generally slower growing.

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61 HoC and CM identifiers deliberately removed