The British Army is facing huge financial deficit
The National Audit Office has estimated the cost of new weapons and equipment for UK forces at £305.5 billion for the period 2023-33, an increase of £16.9 billion over budget and the largest shortfall since it submitted its first report in 2012.
The British Armed Forces face a shortfall in funding equipment worth 17 billion pounds ($21.6 billion) over the next decade, which raises concerns for defense officials in light of the escalation of geopolitical risks, according to what was revealed by the British Public Expenditure Watchdog.
The office reported that the significant increase in costs in nuclear and marine energy programs in light of Britain’s efforts to develop an alternative nuclear deterrent, in addition to the rise in inflation, led to an increase in the future budget, which resulted in a “significant deterioration” in the financial situation of the Ministry of Defense.
Russia’s war with Ukraine highlighted the need for European countries to increase military spending, as Britain is considered an important ally and supplier of military equipment to Kiev, and it is also investing in improving the readiness and alertness of its military equipment and expanding ammunition facilities.
British Defense Minister Grant Shapps said in response to the monitoring body’s report that while the government expects pressure on the budget, “the Defense Minister is confident in its ability to adapt within the limits of the budget allocated for equipment,” indicating that there are scenarios under which the ministry will achieve a surplus over 10 years.
The government increased spending on the military field by an additional five billion pounds sterling earlier this year, raising it to about 2.25% of GDP this year and next, after it was about 2%.
Shapps said the National Audit Office report didn’t take into account the government’s ambition to increase defense spending to 2.5% of GDP when economic conditions permit.
“The Ministry of Defense acknowledges that the costs of its equipment plan for the period 2023 to 2033 are prohibitive,” Gareth Davies, head of the audit office, said in a statement.
The National Audit Office has indicated that decisions to cancel or reduce potentially “cost-prohibitive” projects should not be postponed as this could result in “poor value for money”.
He added that the budget shortfall may be higher than the estimated amount, because the equipment plan, he studied does not include the costs of developing new capabilities or extending the life of some equipment such as combat armored vehicles such as Warrior and Challenger 2.
