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MoD in £1.2 billion underspend...

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MoD in £1.2 billion underspend...

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Old 13th May 2014, 09:15
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MoD in £1.2 billion underspend...

MoD in £1.2 billion underspend as thousands of troops are sacked - Telegraph

The Commons' Public Accounts Committee warned that George Osborne may be "tempted" to make further cuts because of the underspend, which the Ministry of Defence said it could not explain.
My italics.

Is MoD fit for any purpose whatsoever, let alone their raison d'être? One gets the impression that a chimps tea party is in progress, 24/7.
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Old 13th May 2014, 09:23
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but last year they overspent by £ 1 bn didn't they?
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Old 13th May 2014, 09:26
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And I read that first as $1.2 million,
then realized what it really said
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Old 13th May 2014, 09:51
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Ooh great.....we're running short of printer paper!
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Old 13th May 2014, 11:06
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The B Word ... That's why there aren't any Size 10 Flying Boots in the Stores then
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Old 13th May 2014, 11:22
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but last year they overspent by £ 1 bn didn't they?
Nope, they underspent by roughly the same amount last year, I'm not sure whether its a tactical move, given the MoD's ability to roll its underspends into following years...
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Old 13th May 2014, 11:45
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I'm not sure whether its a tactical move
... or simply another illustration of the (lack of) ability to forecast and manage a budget!
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Old 13th May 2014, 12:28
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probably that.
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Old 13th May 2014, 12:29
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Current management applied too much risk across the board. Safe but restricts new projects.

I
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Old 13th May 2014, 13:01
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Get the impression we are back to VSO promotion down to budgetary control and underspend as opposed to sensible decision making.

And its currently absolutely destroying morale on the front line.
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Old 13th May 2014, 13:28
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Before the usual suspects get carried away with the popular passtime of kick-the-MoD, there's a whole raft of reasons why the Equipment Budget has underspent. Without sight of the individual elements, though, we don't know what they are likely to be. As Bastardeux suggested, it could be tactical but that's a dangerous plan where those treacherous sods in the Treasury are concerned.

For all of you who are worked up about cuts to the Manpower Budget, unless someone's changed the rules, you can trade bodies for kit but not the other way round.
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Old 13th May 2014, 13:30
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struck me quite a bit of it could be the Rivet Joints .....

not yet accepted so not paid for
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Old 13th May 2014, 13:35
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What gets me is not the amount of the alleged underspend but MoD's claim it can't explain it. It smacks of leadership saying "don't overspend at all cost", even if that cost is complete ignorance of what you're doing.
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Old 13th May 2014, 13:37
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Here's an alternative view:

What's Wrong With An Underspend?
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Old 13th May 2014, 17:01
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HH,

The Air Sneaker will have been paid for. The FMS requirement was for an RJ. USAF have delivered as per the contract.

Not being able to fly them, is not USAF's problem.
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Old 13th May 2014, 17:46
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Originally Posted by Jet In Vitro
HH
Not being able to fly them, is not USAF's problem.


What the have the MOD been doing!
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Old 13th May 2014, 19:43
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Based on the limited info available it's a bit early to be taking the usual pot shots. What WOULD be shocking is if it turned out we were reverting to the old -and idiotic practice of "get it spent at all costs". There's lots of valid reasons why a budget might be underspent.
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Old 13th May 2014, 19:49
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As I alluded to initially, and has been mentioned subsequently, it's the MoD's inability to 'explain' the underspend which is ludicrous, not the underspend itself.

A million here or there, fair enough(!), but £1.2 Billion?
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Old 13th May 2014, 20:00
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How do they know they are £1.2Bn underspent? Presumably because they have some form of accounts in terms of money spent.

Assuming (and it's a big assumption) they had a list of "planned/budgeted expenditure" then surely a comparison of the 2 would show where the under spend has occurred? You can't get much more basic than that.

As WW said, it's not the under spend itself that is embarrassing for MOD, it's the inability to 'explain' how/why/where it occurred that is the cause for concern!

It certainly implies they haven't got a firm grip on things....
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Old 13th May 2014, 20:12
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My wet finger tells me that £1.2bn is about 3%. If I missed the mark by 3% (either way) my company directors would be feeling my parts, hats off, no sherry.
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