13. Delays and cancellations to programmes have resulted in gaps in armoured vehicle capability that will not be filled until at least 2025.29 This is also partly due to long lead times in the procurement of armoured vehicles. These capability gaps mean that it will be difficult for the Department to achieve the aspirations of the Strategic Defence and Security Review (SDSR) to make the Army "more mobile and more flexible."30
14. The consequence of recent cuts to armoured vehicles programme over the last five years is that just £5.5 billion remains in the budget for the next ten years.31 This is insufficient to fund the Department's current armoured vehicles programme.32 The Department has yet to devise a plan for how it will close the gaps in both its budget and vehicle fleets.33 To deliver better value for money in future it plans to purchase off the shelf vehicles through international competition, with upgrade and support carried out by UK industry for reasons of security of supply.34
15. Current UOR vehicles are not able to act as substitutes because they cannot be used to meet the range of military tasks set out in the SDSR. Furthermore, the Department would need to find additional budget cover to bring these vehicles into its core fleet. The Department has not yet identified which UOR vehicles it intends to retain in service after the UK ceases to be involved in combat operations in Afghanistan around 2014.35
16. In order for the Department to meet its necessary capabilities in future, it will need to find alternative ways of delivering the SDSR's requirements using other types of defence equipment. The witnesses acknowledged that this was not the most effective approach to delivering the Department's requirements.36 This is because other capability areas will have to be stretched to cover the gaps, which overall is likely to have a detrimental effect.37
17. The Accounting Officer told us the defence budget "is broadly in balance. It is not yet completely in balance".38 This is despite the work started in the SDSR and continued in two subsequent reviews to balance the budget.39 The Accounting Officer confirmed that the Department will deliver its budget in the current financial year40 and that in future the Department will only commit to spend on equipment projects if it has the budget to do so.41
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29 Q 117
31 Q13, Ev15
32 Q 113, C&AG's Report, Figure 1, p 5
33 Qq 113-115
34 Qq 126-7
35 Q 115
40 Q71
41 Q55