Labour’s Zero-Based Review highlights government defence waste

Labour today publishes a Zero-Based Review which highlights the wasteful and short-sighted actions of the Tory-led government on defence.

It sets out a series of failings including:

·  Millions of pounds of taxpayers’ money wasted and vital assets squandered as a result of their short-sighted approach to the MoD’s finances through their rushed SDSR.

·  Millions wasted on its botched attempt at procurement reform in 2013. For example £74m was wasted on a U-turn on the carrier strike programme, a decision described by the National Audit Office as one that was based on “immature data and flawed assumptions.” 

·  Reservist recruitment targets repeatedly missed and then revised down by desperate Ministers.

·  And problems with the IT platform used for recruitment have also wasted £70m and continue to cost taxpayers £1m per month until the problem is resolved, the date for which has been repeatedly delayed.

·  The ZBR outlines plans to save over £60 million by tackling defence waste and bringing the numbers of Navy top-brass down to sensible levels.

·  It also sets out how Labour will overhaul the Tory-led government’s failing defence procurement strategy. This will mean a Labour government can better protect troops on the frontline and deliver the equipment they need, on time and on budget.

A Labour government will save:

£19m in the first year, followed by subsequent annual reoccurring savings of £32m from reducing officer ranks in the Royal Navy in line with the reductions in the junior ranks that this Government has overseen, as part of a wider plan to re-balance all three branches of the Armed Forces.

£29m per year by rationalising the MoD’s inventory, selling stockpiles which the NAO has identified as surplus to requirements and costly to maintain.

The review also details how Labour intends to turn-around failing defence procurement processes:

Labour will challenge the culture of unrealistic expectations that has been the hallmark of major projects for too long.  Equipment programmes should meet 100 per cent of need and be delivered on time and within existing budgets.

Labour will address the conflicting interests of key actors in the procurement process. The budgeting system needs to address the motivations of the key players in defence procurement, making it a rational decision for the main players to ‘Design to Cost’.

 

Vernon Coaker, Labour’s shadow Secretary of State for Defence, said:

“We know that defence is the first concern of any government and therefore it must be a priority for any party which aspires to govern.

“But we also know that in these challenging financial times, we will have to make tough decisions.

“This document shows that Labour is committed to making appropriate efficiencies in the Defence budget in order to maximise frontline capabilities and ensure that the UK’s Armed Forces are put on a sustainable footing.

“Labour are clear that we will avoid the mistakes of the current Government by conducting an SDSR that is both strategically-driven and fiscally responsible.”

Chris Leslie MP, Labour’s Shadow Chief Secretary to the Treasury, said:

“David Cameron’s government is set to break its promise to balance the books and get the national debt falling.

“The next Labour government will get the deficit and debt down, but we will do so in a fairer way and by examining every pound of spending.

“At this interim stage, Labour’s Zero-Based Review has identified £60m of savings in the MoD Budget which can be used to invest in protecting and supporting our servicemen and women on the frontline.

“The coalition has talked tough on the MoD budget but it has wasted millions of pounds with a chaotic and costly approach to the purchase of equipment at the same time as ordering mass Service sackings and cuts to pensions and allowances.

“Labour will always make Britain’s safety and security its first priority but we will end the era of expensive coalition u-turns on the procurement of vital equipment.”

ENDS

Notes to editors:

The full document can be found here:

http://www.yourbritain.org.uk/agenda-2015/policy-review/zero-based-review


Labour will cut the deficit every year, and get the current budget into surplus – and national debt falling – as soon as possible in the next parliament.

Labour believes Britain’s role in the world is to protect our interests, advance our ideas and promote our values while playing a responsible global leadership role on the world stage. Strong Armed Forces and a strong defence policy are central to that ambition.

Labour’s priority is to see a strong, high-tech Armed Forces equipped for the challenges of the 21st Century with an ability to tackle emerging, interconnected threats, from terrorism to nuclear proliferation to cybersecurity. That is why Labour will conduct a Strategic Defence and Security Review that is strategically driven and fiscally responsible.