8. On the basis of a report by the Comptroller and Auditor General, we took evidence from the Ministry of Defence (the Department) on the problems that the British Army (the Army) has encountered in establishing and implementing its partnership with Capita to recruit soldiers, and the steps that it is taking to achieve the intended benefits.1
9. In 2012, the Army sought to reform its approach to recruitment by entering into a partnering agreement with Capita Business Services Ltd (Capita). It established the Recruiting Partnering Project and committed £1.36 billion over ten years. The Programme's aim was to recruit the quantity and quality of soldiers that the Army requires each year (including regular and reserve officers and soldiers), and to save money. In March 2012, following a competitive process, the Army awarded a £495 million contract to Capita. It believed that contracting-out to a commercial provider would bring new expertise in recruitment and marketing.2
10. However, Capita has missed the Army's annual targets for recruiting new soldiers and officers every year since it began in 2013. The shortfall each year has ranged from 21% to 45% of the Army's requirement. In 2017-18, Capita recruited 6,948 fewer regular and reserve soldiers and officers than the Army needed. Capita missed the Army's annual target for recruiting regular soldiers by an average of 30% over the first five years of the contract, compared with a 4% shortfall in the two years before Capita started. Recruitment shortfalls result in the Army placing greater strain on existing personnel to maintain operations and limit its ability to develop the capabilities it needs in the future.3
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1 C&AG's Report, Investigation into the British Army Recruiting Partnering Project, Session 2017-19, HC 1781, 14 December 2018
2 C&AG's Report, paras 2, 1.5
3 Qq 10,13; C&AG's Report, para 5