A news report
has projected that Britain’s Ministry of Defense (MoD) could face a gap of £15
billion (less than $20 billion) in a matter of a decade if it fails to
prioritize its programs for production of modern military equipment.
The National Audit
Office (NAO) published a report on Monday suggesting that the MoD would be
short of £7 billion in the next 10 years as the ministry’s forecast costs
exceed its budget of £186.4.
The NAO said the
black hole could be expanded to reach the whopping figure of 14.8 billion if
all sorts of identified risks occur and the MoD fails to decide which program
to defer or drop as soon as possible.
The report said
the MoD had incurred huge costs on taxpayers by postponing projects that should
not have been deferred, adding that there will be a “real danger” for the
ministry in the next 10 years to waste more taxpayers’ money.
“These [deferred
projects] included delaying by two years its program to introduce new remotely
piloted aircraft (Protector), resulting in an estimated £160mn cost increase,
and delaying some Typhoon training by one year, which increased costs by £6
million,” it said.
The NAO said the
British government’s last week budget announcement which gave an extra £1
billion to the defense sector failed to consider the real gaps in the MoD
budget in the upcoming years.
“The announcement
in the budget of an extra £1bn for defense doesn’t deal with the gap in the
MoD’s budget,” it said.
Defense
authorities in Britain have already indicated that they are spending around
four percent more than what has been allowed in the budget. The country is a
key military power in NATO and still contributes to the risky missions in
Afghanistan and in the Baltics where the Western military alliance is allegedly
confronting Russia.
Britain is also a
major arms manufacturer and sells billions of pounds worth of military
equipment to countries in the Middle East and elsewhere.