The Public Accounts Committee report on the Defence Equipment Plan published yesterday tells a terrible story.
The assessment is stark. It describes how huge and so far unidentified savings (possibly £20B) still have to be found to fund the existing programme, and how the equipments coming into service may not provide resilience against a changing threat profile. It should be read by anyone concerned about Defence – but it is not for the squeamish.
What does this mean for pensions? The report makes no reference to personnel costs but clearly Defence must find its savings from somewhere, and these kind of savage financial pressures on the 40% of the defence budget spent on equipment will impact across the board. This is the atmosphere in which future pensions decisions will be taken.