UK & World News
The latest UK & World news stories from the Press Association.
MoD budget claims 'over-optimistic'
00:05, Feb 10 2012
Claims the Ministry of Defence has finally got to grips with its equipment budget after years of cost overruns and delays may be "over-optimistic", MPs have warned.
The Commons Public Accounts Committee said that, despite the 2010 Strategic Defence and Security Review and two subsequent cost-saving exercises, the MoD was still only able to say the defence budget was "broadly in balance".
And it warned that in the light of the continuing public spending squeeze, planned real terms increases in the equipment budget from 2015 may prove to be "unrealistic".
"It is unacceptable that the department still cannot identify the extent of the current gap between resources and expenditure," the committee said. "The department is basing its current 10-year equipment plan on Treasury planning assumptions that are now likely to prove over-optimistic.
"The department was told at the time of the comprehensive spending review settlement that it could expect 1% real terms equipment budget increases from 2015. It is planning its budget on this basis, but in the light of current economic conditions that assumption may be unrealistic."
The committee said that despite signs of improvement in the equipment programme, the estimated cost of its 15 largest projects still rose by £466 million in 2010-11.
Since their original approvals, the total costs of the projects had risen by £6.1 billion to stand at £60 billion - an 11.4% increase - while total delays now stood at 26 years and 10 months.
Committee chairman Margaret Hodge said there was a need for greater realism within the MoD towards procurement process.
"Much of the cost increase over the last decade has been down to the fact that the estimates for large programmes significantly underestimated the real cost," she said.
"Rather than the over-optimism which has held sway at the start of major projects, what is needed is realism: about the complexities of projects, the long-term costs of decisions taken today and the implications down the line of short-term budget cuts."
Pair set for child cruelty sentence 16:05, May 21 2012
A mother and stepfather who forced their 11-year-old son to live in a filthy converted coal-bunker have been put behind bars. more
Bomber kills 90 at military drill 15:05, May 21 2012
At least 90 soldiers were killed and dozens of others injured when a suicide bomber blew himself up at a military parade drill in the Yemeni capital Sanaa. more
Mandelson denies deal with Murdoch 15:05, May 21 2012
Lord Mandelson has denied there was any deal between Labour and Rupert Murdoch's newspaper empire ahead of the 1997 general election. more
MacAskill defends Megrahi release 15:05, May 21 2012
Scotland's Justice Secretary has defended his decision to release the Lockerbie bomber almost three years ago as the only man convicted of the tragedy is buried in Libya today. more
Bomber kills 60 at military drill 14:05, May 21 2012
At least 60 soldiers were killed and dozens of others injured when a suicide bomber blew himself up at a military parade drill in the Yemeni capital Sanaa. more
Olympic flame goes out during relay 13:05, May 21 2012
The Olympic torch went out for the first time during the London 2012 relay, organisers have confirmed. more
Missing children website relaunched 13:05, May 21 2012
An official website to help find missing and abducted children from the UK has been relaunched by the police's specialist child protection agency. more
Watchdog launches Hunt inquiry 13:05, May 21 2012
Westminster's sleaze watchdog has launched an inquiry into Culture Secretary Jeremy Hunt following claims that he failed to register donations from media firms, it was revealed. more
38 soldiers killed in Yemen attack 12:05, May 21 2012
At least 38 soldiers were killed and dozens of others injured when a suicide bomber blew himself up at a military parade drill in the Yemeni capital Sanaa. more
Miliband attacks social inequality 12:05, May 21 2012
Ed Miliband has accused the Government of taking backward steps on social mobility by allowing inequality to grow and denying bright youngsters from poor backgrounds the chance to succeed. more
The latest UK & World news stories from the Press Association.
