Updated Charts: Funding on Equipment and the Armoured Vehicle Programme

5. Since our May 2011 report on the Cost-effective Delivery of an Armoured Vehicle Capability, the Department has further reduced its forecast spend on the Equipment Programme, both as part of Planning Round 11 and through the additional measures taken as part of the Three-Month Exercise. In recent years, additional costs have been added to the equipment programme at the start of each Planning Round. The reductions described here reflect the removal of these additional costs and the impact of moving money beyond the current planning horizon, as well as changes to the volume of activity within the programme.

6. Equipment Programme funding: The updated Figure 4 indicates that £5.2 billion was taken from the 10-year Equipment Programme as part of the Planning Round 11 measures, in additional to the £20.2 billion removed by the Strategic Defence and Security Review and the £20.6 billion removed by previous planning rounds between 2005 and 2010. The Three-Month Exercise reduced project funding within the Equipment Programme by a further £6.6 billion.

7. Armoured Vehicle funding: Updated Figure 5 indicates that Planning Round 11 removed £596 million from the 10-year armoured vehicle programme. The Three-Month Exercise removed a further £2.8 billion, thereby reducing funding for armoured vehicles to £5.5 billion over the next decade.

8. Armoured Vehicle programme: Updated Figure 2 indicates the impact the savings measures have had on the principal armoured vehicle programmes at the outcome of PR11. Known or anticipated changes are:

(a) Tanks: Challenger 2 CSP has been descoped from its previous planned form; options are still under consideration in PR12 but at the outcome of PR11 no changes have been agreed since the May 2011 position.

(b) Armoured Infantry: The Department has announced its intention to proceed with an upgrade to the Warrior Infantry Fighting Vehicles. The demonstration and manufacture contract has not yet been signed, but it is assumed that the final platform numbers will be reduced from earlier assumptions, and the in-service date will be delayed to 2020 with delivery commencing in 2018.

(c) Reconnaissance: The in-service date of Scout SV was delayed by nine months in PR11 and is 2017.

9 . Urgent Operational Requirements' spend: Updated Figure 6 indicates that Urgent Operational Requirements' funding on armoured and protected mobility vehicles has risen by £33 million.

10. Spend across equipment areas: Updated Figure 7 profiles the impact of savings across the equipment areas, and identifies the armoured vehicle sector as having taken the largest absolute reduction in spend in terms of options taken over the ten year planning horizon from each of the successive planning rounds.

Figure 2

ARMOURED VEHICLE ORECASTE CAPABILITY 2010-30

Figure 4

IMPACT OF THE 2005-10 ANNUAL PLANNING ROUNDS, STRATEGIC DEFENCE &SECURITY REVIEW, 2011 ANNUAL PLANNING ROUND AND 3 MONTH EXERCISE ONPLANNED EXPENDITURE WITHIN THE DEPARTMENT'S EQUIPMENT PROGRAMME

Figure 5

IMPACT OF THE 2005-10 ANNUAL PLANNING ROUNDS, STRATEGIC DEFENCE & SECURITY REVIEW, 2011 ANNUAL PLANNING ROUND AND THREE MONTH EXERCISE ON PLANNED ARMOURED VEHICLE EXPENDITURE

Figure 6

APPROVED EXPENDITURE ON ARMOURED AND PROTECTED MOBILITY VEHICLES THROUGH THE URGENT OPERATIONAL REQUIREMENTS PROCESS (MILLIONS)

Figure 7

IMPACT OF ANNUAL, STRATEGIC DEFENCE & SECURITY REVIEW (SDSR) AND THREE MONTH EXERCISE SAVINGS MEASURES ON EQUIPMENT AREAS