The Ministry of Defence has set out a strategy to make better use of its built estate, but much of this is uncertain and carries risks, according to a report published by the National Audit Office.
For many years, the report states that the Department has not had a clear plan regarding the future size and shape of its estate. The resulting lack of certainty about where to invest its limited funding, combined with general underinvestment, means that the condition of much of the estate is poor and deteriorating. As a result of under investment there is an increasing risk that the poor condition of the estate could affect defence capability. The estate is an important element of defence capability, enabling the Armed Forces to train and undertake operations, and providing accommodation for personnel and their families. As the estate's condition deteriorates, some parts may wholly or partially close which will exacerbate other risks and could reduce operational readiness.
Constraints on the Department's funding for its estate are also leading it to making decisions that are poor value for money in the longer term. In addition, the 1996 decision to sell and lease back the majority of Service Family Accommodation is now limiting the Department's ability to manage this element of the estate cost-effectively. Poor accommodation for service families is also affecting the morale as well as the recruitment and retention of service personnel. The government has set targets for the Department to reduce its built estate by 30% by 2040. The Department is also the largest contributor to the government's objective of releasing land to build 160,000 new homes between 2015 and 2020.
National Audit Office report
The National Audit Office report found that, after many years of limited progress, the Department has set out a new vision for its future estate that supports military capability while meeting government targets.
It has developed a Footprint Strategy which will contribute 15,000 toward the housing target by 2020 and enable it to dispose of 25% of its estate by 2040. This is based on assumptions and estimates and the Department expects that its plans will evolve over time.
According to the NAO, however, implementing this strategy will be extremely challenging as many of the estate disposals, re-provisioning of essential facilities on sites to be disposed of and personnel moves are interdependent. As a result of the steady decline in the condition of the estate the Department now faces significant costs over the next 30 years to improve the condition of the estate.