Board minutes: 24 January 2024
Published 2 April 2024
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Minutes of the Extraordinary Board Meeting
Held at 100 Parliament Street, SW1 and via video-conference
24 January 2024 10:00-10:20
| Board members present: | Others present: |
|---|---|
| Hannah Nixon (Chair) | Alan Brennan |
| Roy Barker | Colin Hill |
| Peter Freeman | Ben Johnson |
| Alastair Groom | Siobhan O’Donoghue (minutes) |
| Hugh Kelly | Tara Usher (MOD Representative) |
| John Russell | Chris Willcox |
| Joanne Watts | |
| Claire Williams |
1. Welcome, apologies, announcements, and declarations of interest
The Chair welcomed Board members and attendees to the extraordinary meeting. There were no apologies for absence or declarations of interest.
2. Baseline Profit Rate, Capital Servicing Rate and Funding Adjustment Methodology Assessment 2024-25 (SSRO 01-0124)
The Head of Pricing and Economics presented proposed changes to the SSRO’s profit assessment methodology, which had arisen due to amendments to the Defence Reform Act 2014, and wider economic conditions. Stakeholders were aware of both matters, which were not considered contentious by MOD or industry.
The Regulatory Committee had considered the amendments at its meeting on 16 January 2024 and, subject to the Board’s agreement of the changes above, had approved the assessment for 2024-25.
Regarding a Board member’s query regarding the interest rates used to inform the baseline profit rate, this issue would be deferred for discussion as part of the Board’s annual consideration and approval of the assessment methodology consultation, later in 2024.
The Board approved the proposed changes in methodological approach in relation to the assessment of:
- the SSRO Funding Adjustment and the Government Owned Contractor Rate; and
- the Baseline Profit Rate for capital servicing.
SECRETARY’S NOTE: On 15 March 2024, the Minister for Defence Procurement confirmed acceptance of the SSRO’s assessment of the baseline profit rate and capital servicing rates for 2024-25. The statement and the rates can be found here: Written statements - Written questions, answers and statements - UK Parliament
3. Any other business
There was no further business.
4. Next Board meeting
The next meeting of the Board would take place on 26 March 2024.
Siobhan O’Donoghue
January 2024