Conclusion on value for money

22  The urgent need for the Ministry of Defence to reduce its costs has left it with little choice but to make rapid reductions to its workforce. The Department has acted decisively to put in place a redundancy programme and is making progress in planning for the future. So far, the redundancy programme is running well and the Department's approach has been largely in accordance with good practice. On that basis, we conclude that to date the Department has acted in a way that is consistent with value for money.

23  For the Department to ensure that it can deliver its strategic objectives with fewer staff in the future, it will need to make far reaching changes to the ways in which it carries out its business. Developing the detail of the changes and implementing a new operating model for Defence will take time and is only likely to be complete after substantial numbers of skilled personnel have left. The Department needs to find a way to put in place a more targeted approach to achieve its intended outcomes to restructure its workforce as required and have the key skills it requires. Unless it does so, there are clear risks to its ability to make the necessary savings and still be able to deliver value for money in the future.