It is possible to have some sympathy for the Defence Secretary John Healey, despite the irritating self-serving mantra of Rachel Reeves that the Conservatives have left a £22 billion fiscal ‘black hole’. Healey, generally a straightforward and sensible politician, has inherited a department with huge cultural problems, and real financial issues.
In March, the House of Commons Public Accounts Committee revealed that the MoD’s Equipment Plan for the next decade had a deficit of £16.9 billion, though some have suggested it may be more like £20 billion. Spending is out of control, wasteful, and unrealistic.
The most alarming aspect of this move is that it suggests a catastrophic misdiagnosis
However, the way that the Ministry of Defence is attempting to get on top of its budgetary woes is staggeringly ill-advised. Reports suggest they want to slash the spending ceiling that requires ministerial approval from £2 million to £50,000. In other words, civil servants in the MoD, no matter how senior or experienced, cannot authorise a contract worth more than £50,000.
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