Policy paper

2010 to 2015 government policy: armed forces and Ministry of Defence reform

Updated 8 May 2015

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

This is a copy of a document that stated a policy of the 2010 to 2015 Conservative and Liberal Democrat coalition government. The previous URL of this page was https://www.gov.uk/government/policies/providing-versatile-agile-and-battle-winning-armed-forces-and-a-smaller-more-professional-ministry-of-defence Current policies can be found at the GOV.UK policies list.

Issue

The UK needs to support its existing, high quality military operations while reducing the overall running costs of defence.

Actions

We expect to spend at least 2% of gross domestic product (GDP) on defence, being realistic about what we can afford now and in the future to get the most armed forces capability we can from the defence budget.

Our ‘transforming defence’ programme sets out security targets, budget reforms, and a new organisational structure to help us provide flexible, agile and capable forces in a more affordable way.

In order to support national security needs more efficiently, we will:

  • provide the military capabilities as set out in the Strategic Defence and Security Review (SDSR) and since to be able to continue to:
    • react quickly to crises
    • carry out operations on the scale of Afghanistan
    • respond to a range of threats in the future
    • maintain the UK’s strategic nuclear deterrent
  • introduce a new, simplified operating model for defence that cuts running costs significantly by 2020 as set out in the Defence Reform Review recommendations
  • reduce Armed Forces regular personnel by 33,000 (about 19%) by 2020, while increasing the trained strength of the Reserve Forces by 50% or more to about 35,000 by 2018
  • reduce the Civilian workforce by some 32,000 (about 38%) by 2020
  • honour the Armed Forces Covenant to make sure the Armed Forces community is treated fairly and is not disadvantaged because of its military experience, by addressing issues from housing and education to support for veterans
  • develop the New Employment Model for service personnel
  • keep our network of overseas military bases (Gibraltar, Cyprus, Falklands, Ascension, and Diego Garcia) but bring back all our personnel from Germany by 2020
  • continue to build constructive bilateral relationships including with the US

Background

The Ministry of Defence (MOD) and the Armed Forces are working to implement the October 2010 Strategic Defence and Security Review (SDSR), and the recommendations of Lord Levene’s independent Defence Reform review of the department’s strengths and weaknesses in June 2011. Progress on these is reported annually to Parliament.

As set out in the Defence Vision this is being managed through the ‘transforming defence’ programme which aims to achieve:

  • battle-winning Armed Forces
  • a smaller, more professional MOD
  • a realistic approach to what we can afford

SDSR and Future Force 2020

The SDSR and subsequent Army 2020 and Future Reserves 2020 reports set out the changes we will make to our defence capability so that it is ready for the challenges we will face in 2020 and beyond. We call this capability Future Force 2020.

The policy, resource and capability choices that are set out in the SDSR are based on the National Security Strategy (NSS). The last Strategic Defence Review was in 1998 at a time when we faced different threats. The 2010 NSS reflects the risks we face now and our priorities across all areas of national security.

The House of Commons Defence Committee published its report on the SDSR in August 2011, and the government’s response was published in November 2011.

The First Annual Report on the SDSR and the Prime Minister’s Written Ministerial Statement on the Report from December 2011, and the Second Annual Report on the SDSR and Written Ministerial Statement from November 2012, have more detail about what Government is doing and will do to carry out the SDSR. It also confirmed a future annual update to Parliament in 2012.

Bills and legislation

It was announced in the 2013 Queen’s speech that a ‘Defence Reform Bill’ will be introduced to provide the framework to improve the way we procure and support defence equipment and strengthen the reserve forces.

Appendix 1: Civilian Workforce Programme

This was a supporting detail page of the main policy document.

The Civilian Workforce Programme is a strategy to ensure that the Ministry of Defence (MOD) has an engaged and motivated civilian workforce in the right numbers, with the right skills, at the right time.

It provides a range of policies and processes to support the civilian workforce, consistent with our defence transformation strategy and the government’s civil service reform programme.

The main elements of the programme between now and 2015 are:

  • reducing the workforce to meet SDSR and 3ME targets
  • introducing new ways of carrying out workforce and skills planning so that the department has a clear understanding of the profile of the workforce it needs
  • introducing development and talent management programmes to provide the high quality workforce the department needs
  • raising the quality of leadership within the department
  • developing a modern pay structure and terms and conditions of service which are fair to staff, meet the MOD’s recruitment and retention needs, and meet, but do not exceed, the terms offered by good quality employers in the wider economy quality employers in the wider economy
  • participating in wider initiatives to develop and manage the civil service as a whole
  • simplifying and streamlining our HR policies to support staff and managers

Appendix 2: keep our network of overseas military bases

This was a supporting detail page of the main policy document.

Our overseas military bases provide ongoing services, people and equipment to our overseas territories. Read more about UK overseas bases in the Overseas Territories policy.

Appendix 3: a new, simplified operating model for defence

This was a supporting detail page of the main policy document.

By 2020 the Royal Navy will have reduced by around 5,500 personnel (15%) to 30,000, the Army by around 19,500 (19%) to 82,000, the RAF by 8,000 (20%) to 32,000, and the civilian workforce by 32,000 (38%) to about 53,500. No changes will be made to front line Army, Royal Marine or RAF (Royal Air Force) Regiment Units while operations in Afghanistan continue.

We are making progress in reducing our headcount against the SDSR April 2010 baseline. As of 1 July 2012 we had carried out:

  • about 9,700 reduction (5.4%) in military trained strength
  • 16,570 (20.0%) reduction in civilian workforce

Changing the Armed Forces involves changing the Ministry of Defence, as set out by Lord Levene’s Defence Reform report, to create fully-empowered Commands held to account by a smaller, more strategic Head Office (reduced by a third), and supported by enabling and acquisition organisations, by April 2014.

We have already set up a new defence operating model, new Joint Forces Command, new command structures for the Royal Navy, Army and RAF, and a simplified Army regional structure.

We have set up Defence Business Services (DBS) in partnership with Serco, a government services company. The New Defence Infrastructure Organisation (DIO) is also developing private sector partnership arrangements.

The new Materiel Strategy announced in May 2011 makes the case for changing the way we purchase defence equipment and support. Lord Currie of Marylebone’s independent review of regulations to be used by the MOD to price work bought from a single source supports this change too.

We are considering how Defence Equipment & Support (DE&S), the organisation that equips and supports the Armed Forces for current and future operations, can be run more effectively and efficiently. As announced by the Secretary of State in July 2012, our priority is working on the government-owned, contractor-operated (GOCO) option to show whether the Value for Money case is conclusive.

We are also developing a commercial strategy and consulting with industry experts to find out what our needs are. This work will support decisions later this year on whether to proceed with GOCO, and to launch a competition for a private sector management company to run the MOD.

Changing the way the MOD works is as much a behavioural challenge as it is a structural one, and for this purpose we have set up our Behaviour & Business Improvement (BBI) Campaign, following the ‘Be-Think-Do’ model:

  • be a leader: improved business leadership
  • think defence: cross defence thinking
  • do it better: better business practices

Appendix 4: curbing defence costs while providing battle-winning forces

This was a supporting detail page of the main policy document.

We will reduce spending on defence by around £74 billion over 10 years to balance our budget and help bring down the national deficit. Despite this, we will continue being one of the very few countries that can deploy and sustain a brigade-sized force together with its air and maritime enablers, capable of both intervention and stabilisation operations almost anywhere in the world.

We are 2 years into a 10-year programme during which we will spend around £160 billion on equipment and support to carry out Future Force 2020 and the Strategic Defence and Security Review (SDSR) as follows.

Deterrent

In May 2011 we approved the assessment phase for the programme to replace the Vanguard-class submarines.

Royal Navy

The Royal Navy has implemented the main SDSR force structure changes. By 2020, it will comprise 30,000 trained regulars and 3,100 trained Reserves, equipped with new aircraft carriers and Lightning II Joint Strike Fighter; high readiness amphibious capability; new fleet of Type 45 destroyers and Astute class submarines; new Merlin Mk2 and Wildcat helicopters; new MARS tankers; and is ready to accept the new Type 26 Global Combat Ship.

Good progress is being made with the introduction into service of the Type 45 destroyers, Astute class submarines, and the carrier programme. As announced on 10 May 2012, the MOD will move away from the Carrier Variant (CV) JSF and our Armed Forces will instead operate the short take-off and vertical landing (STOVL) variant JSF.

Army

Army 2020 has designed a new Army for the future. By 2020 it will comprise some 82,000 trained regulars and 30,000 trained Reserves, integrated for the first time into a single force able to meet the defence planning assumptions set out in the SDSR. It will remain the most capable Army of its class in the world, with:

  • a reaction force of 3 large, well-equipped and trained armoured infantry brigades and 16 Air Assault Brigade
  • an adaptable force of 7 further infantry brigades, with the Reserve Forces as a core component, providing overseas capacity building to help prevent future conflict, military aid to homeland resilience, and follow-on forces for enduring operations
  • supporting force troops, such as artillery, engineers and medics

We plan to spend about £1 billion on 14 new Chinook Helicopters, and £5.5 billion on the Army’s core armoured vehicle programme over the next 8 years, including the Warrior Capability Sustainment Programme, the SCOUT Specialist Vehicle, and in due course, a Utility Vehicle, and improvements to the Challenger 2 Main Battle Tank.

Royal Air Force (RAF)

By 2020 the RAF will comprise some 32,000 trained regulars and 1,800 trained Reserves.

The RAF’s Air Transport Force is being rationalised as quickly as possible to consist of only the most modern and capable aircraft types, built around hi-tech multi-role Typhoon and Lightning II combat aircraft, with surveillance and intelligence platforms such as Airseeker and a new fleet of strategic and tactical transport aircraft including C17, Atlas (A400M) and the Voyager Future Strategic (transport) and Tanker Aircraft (FSTA). Harrier has been withdrawn from service, and the airframes sold to the US. Tornado drawdown and Typhoon force growth are on schedule.

The reserves will play a greater role in future, as set out in Future Reserve Force 2020, and we are investing an additional £1.8 billion in them over the next 10 years. The number of trained reserves will grow by at least 50 per cent by 2018 to 30,000 in the Territorial Army, 3,100 in the Royal Navy and Royal Marine Reserves and 1,800 in the Royal Auxiliary Air Force.

Military bases

Work on the Footprint Strategy has started, to identify the most cost-effective approach to Future Force 2020 basing and how to reduce the ecological impact and running costs of bases

Investing in science and technology

Technology is important for most equipment and support arrangements, so the government intends to maintain investment in defence science and technology at a minimum of 1.2% of the overall defence budget (over £400 million per year).

This investment will be carefully prioritised against needs such as immediate operations, longer term future capability, infrastructure, remaining an intelligent customer of defence capabilities and maintaining credibility with allies.

As part of keeping our new budget balanced, in line with Lord Levene’s recommendations, top level budget (TLB) holders will be given increased budgetary responsibility, and clear command plans defining the goals they’ll need to achieve are being developed. The Permanent Secretary will hold TLB holders to account against these budgets and plans.

Further information

See these MOD publications for further detail on the plans to curb defence spending:

Appendix 5: the New Employment Model for service personnel

This was a supporting detail page of the main policy document.

The New Employment Model (NEM) is the most thorough review of service personnel terms and conditions of service (career structures, pay, accommodation, training, etc.) in a generation.

It signifies the government’s commitment to provide a modernised terms and conditions of service ‘offer’. It will be designed to meet the expectations of a generation that has yet to join, but will be designed in a way that continues to support and motivate existing service personnel. It will, necessarily, be a long-term, incremental change programme. Although not part of the NEM, the Future Armed Forces Pension Scheme is linked to its development.

When the Strategic Defence and Security Review (SDSR) was published in October 2010, the government made a commitment in respect of service personnel to:

  • ensure that service in the armed forces remains an attractive choice in a rapidly evolving employment market
  • better balance the demands placed on our people and their families, providing greater domestic stability while continuing to support mobility where this is essential to defence requirements

We will start to introduce the new employment model by no later than April 2015, although it may be possible to introduce certain components beforehand. Full implementation is not expected before 2020.

The component parts of the NEM are being designed so that they provide the following benefits:

  • attractiveness: addressing the personal, social and domestic impacts of service both now and beyond so we can recruit and retain personnel of the right quality
  • agility: enabling the services to respond more quickly to changing requirements
  • affordability: the NEM is not a cost cutting exercise, but it is about achieving improved value for money within the same resources

The NEM will involve changes which aim to:

  • provide conditions for regular service personnel that support their domestic stability, and supports partners’ employment; both these issues are consistently cited in the armed forces continuous attitude survey as the top two reasons that increase the intention to leave as careers progress
  • provide a degree of choice which supports an active and rewarding career in the armed forces, providing different career options and allowing opportunities for part-time working in both regular and reserve service
  • provide more consistent terms and conditions of service for regular and reserve personnel
  • provide a coherent, long term accommodation strategy that supports genuine lifestyle choice, increases levels of home ownership, reduces the demand for service families accommodation, improves public accommodation standards and choice, and is fair and attractive
  • targets reward more efficiently
  • simplify and harmonise allowances to make them simpler to understand and more efficient to administer
  • provide training and education that maximises the benefits of service career and personal development
  • enable the individual services to operate more flexible, efficient and adaptable management and control of their personnel

The NEM forms part of the wider transformation of defence. Under the new Defence Operating Model, it will provide the single services with a central set of terms of service and, where appropriate, allow them to work flexibly to meet the operational needs of their individual service.

Communications and consultation

A consultation exercise with service personnel and their families on the modernisation of terms and conditions of service through a New Employment Model (NEM) has been launched. The consultation will run from June until the end of October 2013. A range of engagement methods will be used including presentations, focus groups, online surveys and interviews.