Corporate report

Single departmental plan: 2015 to 2020

Updated 20 March 2017

This corporate report was withdrawn on 14 December 2017

This has been replaced with another version.

£35.3 billion Total Departmental Expenditure Limit (DEL) in financial year 2015 to 2016

This includes £27.7 billion resource DEL and £7.6 billion capital DEL.

Source: ‘MOD Annual Report and Accounts 2015 to 2016’

Vision

The first duty of government is to defend our country and to keep our people safe.

Our national security and our economic security go hand-in-hand. Our strong economy provides the foundation to invest in our security and global influence, which provides more opportunities at home and overseas to increase our prosperity.

In a more dangerous world, we have chosen to use our hard earned economic strength to support our armed forces and give them what they need to help keep Britain safe. We will increase defence spending every year and continue to meet NATO’s target to spend 2% of GDP on defence for the rest of the decade.

In the 2015 Strategic Defence and Security Review (SDSR) we set out plans for stronger defence with more ships, more planes, more troops at readiness, better equipment for special forces, and more for cyber.

We will protect our people, territories, value and interests, at home and overseas, through strong armed forces and in partnership with allies, to ensure our security and safeguard our prosperity.

Our ministers and management

1. Protect our people

Lead minister: Rt Hon Michael Fallon KCB MP
Lead official: Deputy Chief of the Defence Staff for Military Strategy and Operations

1.1 What MOD is doing

The government has committed to spending 2% of GDP on defence. We will defend and contribute to the security and resilience of the UK and overseas territories, protect our people abroad, maintain the continuous at sea deterrent and conduct operations as required. The Strategic Defence and Security Review 2015 (SDSR15) has set out plans for a new Joint Force 2025 which is able to deploy a force of around 50,000. We will:


• pursue a comprehensive political and military strategy to defeat Daesh
• retain the Trident continuous at sea nuclear deterrent to provide the ultimate guarantee of our safety and build the new fleet of 4 Successor Ballistic Missile Submarines
• bring both of our new aircraft carriers, HMS Queen Elizabeth and HMS Prince of Wales, into service so that one is always available
• develop proposals to ensure that the armed forces can operate effectively overseas and are not subject to persistent legal claims that undermine their ability to do their job
• continue to invest in our cyber defence capabilities
• maintain the size of the regular armed forces and not reduce the regular army below 82,000
• deliver on our commitment to expand the reserve forces to 35,000

1.2 How MOD is doing

NATO 2% commitment

As confirmed during the 2015 Summer Budget and spending review, the government has committed to spending 2% of our Gross Domestic Product on defence every year of this decade. The MOD budget will rise by 0.5% above inflation each year until 2020/21, and the armed forces, along with the Security and Intelligence Agencies, will have access to up to £1.5 billion a year by 2020/21 from the Joint Security Fund

The 2% guideline was reaffirmed as part of the Defence Investment Pledge announced at the Wales NATO summit in 2014, and at the Warsaw Summit in 2016. It serves as an indicator of political willingness to contribute to common defence and security efforts. Meeting this commitment underpins Britain’s place in the world. We have the 2nd largest defence budget in NATO, the largest in Europe, and the fifth largest in the world. We are also 1 of 5 NATO members that spends 2% of its Gross Domestic Product on defence and 1 of 10 NATO members (2016 estimates) that meets the NATO guideline to spend 20% of its defence spending on major equipment projects and research and development.

Our defence spending returns are subjected to robust independent scrutiny. NATO members submit headline planning information, including on expenditure, to NATO annually as part of the NATO defence planning process. NATO conducts senior bilateral meetings with all allies to examine their plans, and all allies discuss these plans in a multilateral setting. NATO published updated details of allies’ defence spending on 4 July 2016 in the Secretary General’s annual report.

For more information see the link: Defence expenditures of NATO countries (2009-2016).

Delivering on current operations

Maintaining the continuous at sea deterrent

Our independent nuclear deterrent is the ultimate guarantee of our safety and security. The Royal Navy’s Vanguard Class submarines have sustained Operation Relentless, maintaining a continuous at sea deterrence (CASD) posture which has been uninterrupted since April 1969.

In July 2016, the government delivered the SDSR15 commitment to hold a debate in Parliament on the principle of CASD and our plans to build 4 new ballistic missile submarines. MPs voted decisively in support of the motion, with 472 votes for and 117 against.

We continue to make the necessary investments to sustain CASD, with work already well underway to replace the Vanguard fleet with the new Dreadnought Class. In September 2016, MOD signed the delivery phase one contract, initiating construction of the first “successor” submarine, Dreadnought, at Barrow in Furness. MOD is also making good progress on related SDSR15 commitments, appointing a new Director General Nuclear to oversee the nuclear programme, creating a Submarine Delivery Body, and, working with BAE Systems and Rolls-Royce to put in place improved industrial and commercial arrangements for the delivery of the 4 Dreadnought submarines.

Counter-Daesh

Daesh poses a significant threat to the UK and regional and international peace and security. It has been designated a terrorist organisation by the UN Security Council. The Global Counter-Daesh Coalition has driven Daesh back from much of their previous territory in parts of Iraq, Syria, and Libya.

Daesh has taken over large parts of Iraq and Syria, and smaller areas in Libya, displacing local authorities.

The UK government has set out a comprehensive strategy to degrade and defeat Daesh. We are taking military, political and humanitarian action as part of the Global Coalition of 68 countries and international organisations from around the world. UK and coalition activity helped halt Daesh advances in Iraq and Syria, and then enabled the start of ground operations by local forces to retake areas of Iraq and Syria from under Daesh control.

Daesh now controls less than 10% of Iraqi territory with Tikrit, Baji, Sinjar, Ramadi, Hit, Rutbah, Fallujah and Qayyarah all falling back into government of Iraq (GOI) and Kurdistan regional government control. The major operation to liberate Mosul (Iraq’s second biggest city) is underway

In Syria, coalition support has enabled Syrian Democratic forces to expel Daesh from major population centres such as Kobani, Shaddadi and Manbij and Turkish backed opposition groups to take Jarabulus, al-Rai and Debiq. UK and coalition supported forces have caused much attrition to Daesh manpower and financial revenues and reduced freedom of movement across the areas which they still hold.

In North Africa, working alongside our partners, we continue to improve our understanding of Daesh’s activity. We remain in dialogue with Libya in relation to countering Daesh; we are working closely with Libya’s neighbours to prevent weapon smuggling across the region and to enhance their ability to protect themselves against terrorist threats.

For more information see the link: Daesh: UK government response

Continued support to Afghanistan

The UK’s commitment to building a secure and stable Afghanistan remains steadfast. As part of our ongoing contribution to NATO’s Resolute Support Mission, up to 50 additional personnel will deploy to Afghanistan by early 2017 to join our existing force of 450. These extra troops will supplement our existing work to develop Afghanistan’s future military leaders at the Afghan National Army Officer Academy (ANAOA), build capacity within the Afghan Security Ministries and support NATO’s mission in Kabul, including leading the Kabul Security Force. We will also be putting advisers into the fledgling Afghan Air Force, the development of which is essential to the on going success of the Afghan National Defence Security Forces. As of February 2017 the ANAOA has trained 1,999 Afghan officer graduates, including 57 female cadets, since the first graduation in September 2014.

For more information see: Britain helps train record number of Afghan army officers

Mediterranean migration

The MOD continues to play a role in European efforts to tackle irregular migration across the Mediterranean. Following the tragic drowning of over 700 migrants near the Italian Island of Lampedusa in April 2015, the MOD has maintained at least one ship in the south-central Mediterranean as part of an international efforts to save lives and disrupt migrant smuggling activity. Between April and June 2015, HMS Bulwark was deployed to the Mediterranean, during which time her crew rescued 4,747 migrants.

In June 2015, the European Union launched Operation Sophia, an operation whose mission is to disrupt the migrant smuggling networks that facilitate the flow of irregular migrants towards Europe. HMS Echo replaced HMS Enterprise in December 2016. Between them, these ships have saved over 10,000 lives, destroyed over 100 smuggling vessels and contributed to the apprehension of 20 suspected smugglers.

In June 2016, Operation Sophia’s mandate was expanded to include the training of the Libyan Coastguard. This training, which began in October 2016, is aimed at improving the capabilities of the Libyan authorities to control their borders and counter the activities of the migrant smugglers. The MOD provided a training team to the first iteration of this activity and will continue to support this training as it expands in 2017. The MOD has also provided a ship for 5 months to assist with Operation Sophia’s enforcement of the UN Security Council Resolution 2292, which seeks to stop and search vessels suspected of smuggling arms to Libya.

In the Aegean, since February 2016 a succession of Royal Navy ships provided a near continuous 11 month contribution to a NATO operation that provides support to the Greek and Turkish Coastguards.

Quick Reaction Alert (QRA) launches

We support HMG’s wider aviation security measures with a comprehensive UK air defence system held at continuous readiness. Quick Reaction Alert RAF Typhoon aircraft can be launched within minutes to intercept unidentified or unauthorised aircraft compromising UK controlled airspace. Our integrated air defence system provides the capability to counter airborne terrorist threats and acts as a deterrent against attack.

Delivering outside of current operations

Ukraine training

The UK remains fully committed to supporting Ukraine, its sovereignty and its territorial integrity. UK personnel have deployed to Ukraine to provide infantry, medical, and logistics training to the Ukrainian armed forces, alongside our long standing programme of institutional capacity building.

In 2016 we set an increased direct training target of 5000 personnel, which we expect to be delivered by end of March 2017. Our training approaches are regularly reviewed to assess the best means for the UK to deliver a more enduring effect across the Ukrainian armed forces.

Queen Elizabeth class aircraft carriers

Two new Queen Elizabeth class aircraft carriers, the largest warships ever built for the Royal Navy, will enter service in 2018 and 2020 respectively, transforming the Royal Navy’s ability to project our influence overseas. They will form the core of our maritime task group, with one available at all times.

UK counter terrorism

The MOD continues to work within cross-government structures to ensure that the support it provides to the government response in the event of a UK terrorism incident is in line with the current threat. We have 10,000 military personnel available on standby at short notice to assist the civil authorities for significant terrorist incidents, supported by a wide range of niche military experts and equipment, such as bomb disposal specialists.

The MOD continues to work with our intelligence and security partners to optimise capabilities and enhance our ability to respond to a variety of threats. MOD also works closely with our international partners to ensure our capabilities and response to a UK CT incident, which would be in support of the police, are agile and fit for purpose.

Support to UK civil authorities

Defence is integrated in local and national resilience plans, and personnel and equipment are available to assist the civil authorities at all times. From 1 November 2016, three Army battalions totalling up to 1,200 soldiers are now on 24 hour standby on an enduring basis and can be called upon by government departments to support efforts in the event of winter flooding, or other events of national importance requiring an urgent response across the country.

We provided military aid to the civil authorities on 79 occasions in 2016, and so far on 8 occasions between 1 January and 23 January 2017 (excluding the provision of training and logistics assistance). Most recently we have provided support to the precautionary efforts in anticipation of a possible east coastal tidal surge.

Fisheries Protection

The Royal Navy’s Fishery Protection Squadron enforces fishery protection laws by patrolling the UK Exclusive Economic Zone and conducting inspections of fishing vessels. Any infringements that are identified as a result of the inspections are followed up by the Marine Management Organisation (MMO). This may involve prosecuting offenders or administering fixed admin penalties (FAPs). In 2015/16 the Squadron inspected 460 fishing vessels, resulting in 3 court convictions and FAPs.

Legal challenges against military personnel

To ensure our armed forces overseas are not subject to persistent human rights claims that undermine their ability to do their job, the MOD is continuing to work closely with the Ministry of Justice on developing a package of measures. The first of these was announced on 4 October 2016 by the Prime Minister and the Defence Secretary, who set out the government’s intention to derogate from the relevant Articles of the European Convention on Human Rights in future conflicts, where this is appropriate to do so for the military operation in question. In the event of such a derogation, UK armed forces will continue to operate to the highest standards and be subject to the rule of law.

On 1 December 2016 the Defence Secretary launched a public consultation (‘Better Combat Compensation’) on the government’s plans to provide enhanced compensation for service personnel injured, or the families of those killed, as a result of enemy action in combat, whilst also legislating to bar all future civil claims against the government in such circumstances. We will announce details of further measures in due course.

Following publication of the report of the Al-Sweady Inquiry report, which concluded that the most serious allegations had been fabricated, the Defence Secretary instructed officials to submit evidence to the Solicitors Regulation Authority on apparent misconduct by the solicitors through whom the allegations had been brought and sustained. Following an investigation, the Solicitors Regulation Authority submitted allegations against Phil Shiner and another solicitor from the now-defunct firm Public Interest Lawyers, and against several lawyers from Leigh Day & Co. The Solicitors Disiplinary Tribunal has heard the case against Phil Shiner and has decided that he should be struck off. Revelations that Mr Shiner made unauthorised payments to claimants have led the Iraq Historic Allegations Team (IHAT) to conclude that the majority of cases will be unprosecutable. Most will now be terminated within the next few months. As a result, the Defence Secretary has decided to close the IHAT by summer 2017, after which any remaining investigations will be completed by the Royal Navy Police.

Cyber

We have continued to develop our ability to protect our networks and systems from rapidly evolving cyber threats. We are investing in a new Cyber Security Operations Centre and a pioneering programme to root out cyber vulnerabilities within our military platforms and wider cyber dependent systems, and we are working closely with the National Cyber Security Centre. Through the National Offensive Cyber Programme, a partnership between the MOD and GCHQ, we are also investing in the tools, techniques and tradecraft we need to use cyber to enhance the effectiveness of our armed forces. We are developing our ability to integrate cyber effects with other military activities, and have used offensive cyber in our campaign against Daesh. We are working closely with international partners, an agreement with the US on cyber capability development was signed in summer 2016, and promoting multinational co-operation, co-hosting a major symposium on cyber and the military with the Royal United Services Institute in October 2016.

Numbers of trained military personnel regular and reserve

Defence is developing a workforce that comprises the most appropriate mixture of regular armed forces, reserve forces, and civilian personnel (including contractors). We will maintain the size of the regular armed forces and expand the reserve forces to 35,000 to have a greater role, providing both a larger proportion of the force and also defence’s capability in certain specialist areas that it is not practical or cost effective to maintain full-time.

Trained military personnel and civilians

Military full-time trained strength (RN/RM & RAF) and full-time trade trained strength (Army)1	1 December 2016	2020 target2
Royal Navy/Royal Marines	29,453	30,450
Army	79,027	82,000
RAF	30,867	31,750
Total	139,347	144,200

1: Full-time trained strength (FTTS). The element of the UK armed forces comprised of trained UK regular forces, trained Ghurkhas and a number of reserve forces personnel filling regular posts whilst serving on Full-time Reserve Service (FTRS). It does not include mobilised reservists. A written ministerial statement (WMS) released on 8 November 2016 confirmed the change in Trained Strength definition for Army regulars (full time Trade Trained Stength). The WMS can be viewed here.

2: The SDSR 2015 defence key facts booklet announced targets for 2020 for each of the services.

Future reserves 2020: volunteer reserves trained strength3	1 December 2016	2020 target4
Maritime Reserve	2,430	3,100
Army Reserve	26,330	30,100
RAF Reserve	2,050	1,860
Total reserves	35,800	35,060

3: Future Reserves 2020 (FR20) Volunteer Reserve includes mobilised Volunteer Reserves, High Readiness Reserves (HRR), and those Volunteer Reserves serving on FTRS and Additional Duties Commitments (ADC).

4: A written ministerial statement (WMS) released on 8 November 2016 confirmed the change in trained strength definition (Army Regulars and Army Reserves) and a new trained strength growth profile for the Army Reserve. Maritime and RAF Reserve growth profiles remain unchanged. All 3 services will now use internal management figures to monitor the planned growth in the FR20 population. The WMS can be viewed here.

Totals and sub-totals are rounded separately to the nearest 10.

Source: The Strategic Defence and Security Review 2015: defence facts and figures and UK armed forces monthly service personnel statistics

Civilians

The Chief of Defence People has been appointed Senior Responsible Owner for a programme of work looking across the MOD’s Top Level Budget holders and other organisations within the MOD to develop detailed plans to deliver our targets for civilian reductions by the end of this Parliament. This work is focusing on increasing efficiency and productivity within the department and considering the strategic role of civil servants within defence. This will mean the department will explore whether there are roles that are fundamentally better suited to delivery outside of the MOD.

Early work has focused on confirming headcount reductions from existing programmes, and a series of functional reviews looking across the MOD to identify the scope for further savings, for example, in areas such as administrative and logistics support. We are also exploring more innovative approaches, including the potential to move some groups of staff or activities into different organisational constructs or bodies, possibly by region.

This work is being taken forward as part of a wider programme called the Future Defence Civilian Programme, which also recognises the need to provide a better “employee offer” to enable the department to attract and retain civil servants with the key knowledge and skills it needs to deliver its outputs.

All of this will be brought together into a new MOD Civilian Workforce Strategy for 2020 and beyond, which we are aiming to produce before the end of the year.

Civilians	1 October 2016	2020 target1
Civilians	56,420	41,000

1: Civilian numbers updated quarterly.

2. Project our global influence

Lead minister: Rt Hon Michael Fallon KCB MP
Lead officials: Chief of Defence Intelligence / Director General Security Policy

2.1 What MOD is doing

We will contribute to an improved understanding of the world and increase our influence in the regions that matter to us, through strategic intelligence and the global defence network. We will reinforce international security and the collective capacity of our allies, partners and multilateral institutions.

We will:

• remain at the forefront of the NATO Alliance and support other multilateral organisations
• build on agreements made at the NATO Summit Warsaw 2016 and continue to work with allies to strengthen NATO
• strengthen our defence partnerships in the Gulf, Asia and Africa
• work with our partners to address threats to UK security, including the spread of nuclear, chemical and biological weapons, pandemic diseases, the illegal drugs trade, piracy and organised crime
• collect, process, exploit and disseminate strategic intelligence and insights
• sustain the framework to enable effective UK defence engagement
• help to shape the international security environment
• strengthen the rules based international order including through conflict prevention, capacity building and counter-proliferation
• continue close and enduring work with our allies and partners

2.2 How MOD is doing

North Atlantic Treaty Organisation (NATO)

NATO is at the heart of the UK’s defence policy. NATO Assurance Measures form an important part of NATO’s Readiness Action Plan developed in response to Russian aggression in Ukraine. The UK made significant commitments with activities involving over 4,000 UK personnel in 2015 and 2016. These measures included the provision of Baltic Air Policing, for the third year running (Estonia, May to August 2016), with 4 RAF Typhoons and 120 personnel, as well as airborne surveillance of NATO’s Eastern Flank through the continued commitment of RAF E-3D Sentry aircraft to the NATO Airborne Early Warning and Control Force.

In 2017 the Royal Navy will continue to command two highly capable NATO organisations: the NATO Mine Countermeasures Group 2 and the Standing NATO Maritime Task Group. The latter will have the helicopter carrier HMS Ocean and the Type 45 destroyer HMS Duncan in support and will continue to operate in the Mediterranean, Aegean and the Black Sea. The Royal Marines will continue to support the UK/Netherlands Landing Force, the European Amphibious Initiative and deliver highly specialist training in Arctic and Cold Weather Warfare. We have also committed to sending RAF Typhoons to Romania as part of the NATO Southern Air Policing mission to offer protection and reassurance to the Black Sea region. These aircraft will be on 24/7 standby to police NATO’s airspace.

For more information see the link: UK jets and warship to bolster Baltic security.

The UK will also deploy an additional 28 personnel to Kosovo to join NATO’s KFOR Mission. This will provide reassurance in the Western Balkans region from early 2017, and is NATO’s largest operation to date in Europe, maintaining a safe and secure environment and freedom of movement for all people and communities in Kosovo. For more information see the link: UK steps up measures to reassure European allies.

The UK will Command and lead the NATO Very High Readiness Joint Task Force in 2017, committing 3000 British troops.

On 11 February 2016, NATO defence ministers decided to participate in international efforts to cut the lines of illegal trafficking and migration in the Aegean Sea. NATO forces were on task in the Aegean within days of the decision to participate, and NATO assets are conducting reconnaissance and surveillance of illegal crossings, working closely with the Greek and Turkish Coastguards and EU’s Frontex. The UK has contributed from the outset: to-date HMS Mersey, RFA Mounts Bay, RFA Cardigan Bay and RFA Fort Victoria have all participated. We assess that NATO’s efforts have helped to curb migrant flows.

To unambiguously demonstrate allies’ solidarity, determination and ability to act in response to Russian belligerence, the Warsaw Summit held on 8/9 July 2016 built on the progress made at the Wales Summit and delivered an ‘enhanced forward presence’ of NATO forces in Estonia, Latvia, Lithuania and Poland. The UK is taking a leading role, providing the framework battalion in Estonia from 2017. This will amount to around 800 British personnel, deployed to Eastern Europe on a rotational basis. Detailed planning with our Estonian hosts is well under way and the first deployments are expected to begin in May 2017. It will be a defensive, but combat capable force, composed of 2 UK companies, enablers, and a Headquarters element. Our commitment is also likely to include armoured Infantry, equipped with Warrior, tactical UAVs, and a troop of Challenger 2 main battle tanks. UK forces will work alongside French and Danish troops. In addition we are sending 150 troops to Poland as part of a US led Battalion. It will be drawn initially from the Light Dragoons (1Div) and will be in place for April (in Orzysz, north-east Poland) following interoperability training with the US in Germany.

For more information see the links: Warsaw Summit Press Conference and Warsaw Summit Communiqué.

United Nations

Our contribution to UN Peacekeeping operations currently comprises some 280 personnel in the UN Peacekeeping mission to Cyprus with an additional 15 personnel deployed to other UN operations including Mali, the Democratic Republic of Congo, UN Command in the Republic of Korea and the UN Mission to Libya. We have deployed about 40 personnel to Somalia; these will be supplemented by training teams of up to 30 personnel when required. Planning continues for a major uplift of up to 400 extra personnel to support the UN Mission in South Sudan (UNMISS).

In addition to this, the UK hosted a UN peacekeeping defence ministerial on 8 September 2016. This major international event brought together defence ministers and delegations from 70 countries and 4 multilateral organisations, working together on improving peacekeeping and pledging additional capability for peacekeeping operations. Ambitious targets were also set to advance the Women, Peace and Security (WPS) agenda, particularly the participation of women in peacekeeping roles.

MOD has made significant progress towards improving gender representation and awareness in the armed forces. In July 2016, we announced that the UK would be lifting the ban on women serving in ground close combat roles. We are taking steps to ensure that relevant military doctrine is made gender-sensitive and all UK troops deploying on overseas missions now receive training on WPS and the Preventing Sexual Violence Initiative (PSVI). In August, the army submitted a comprehensive tri-service training needs analysis which identified options for the implementation of standardised WPS training for all personnel, as well as for specialist Gender Advisors and Gender Focal Points. We will work to implement these recommendations over the next year.

United States

The US is our pre-eminent partner for security, defence, foreign policy and prosperity. Our defence relationship with the US remains fundamental to our shared interests, particularly for the conduct of operations and for strategic capability programmes.

We continue to work together with the US in NATO and across other regional theatres (including Africa and Asia-Pacific) coordinate in delivery of shared objectives. This includes providing political leadership and vital operational capabilities to the counter-Daesh campaign, and working ever more closely with the US to plan and conduct operations. Our unrivalled intelligence partnership remains vital to our national security and that of the US.

Our partnership with the US continues to underpin the successful delivery of leading edge capabilities to our armed forces. We have sustained our delivery of continuous at sea deterrence (CASD) based on a common stock of Trident D5 missiles, and are making good progress with the Common Missile Compartment project, a critical component of the Dreadnought-class of ballistic submarines as well as the US equivalent programme. We have continued to move towards bringing our Carrier Enabled Power Projection capability into service, working closely with the US Navy and Marine Corps as we regrow these capabilities. We signed the foreign military sales agreement for 9 P-8 Maritime Patrol Aircraft on 1 August 2016, having reached the same milestone with the Apache AH-64E helicopter programme on 12 June 2016. We have agreed a strategic 5 year exercise programme with the US army,In October 2016 a successful trial of a UK Brigade under US division command took place and we will be testing a UK division under US Corps-level command in 2017-/18. We continue to align our science and technology investments to tackle our most pressing challenges and to deliver disruptive capabilities to both our armed forces.

We have continued to seek a more level playing field for UK defence exports to the US, and to remove the bureaucratic hurdles to our bilateral cooperation. In November 2016 the UK was selected to be a global repair hub providing maintenance, repair, overhaul and upgrade services for F-35 avionic and aircraft components estimated to be worth over £2 billion to the UK.

In engaging with the new Trump Administration, we will seek opportunities to strengthen our bilateral defence cooperation and interoperability with the US across all services and at all levels. From the Prime Minister’s engagement with President Trump, through to Secretary of State for Defence’s engagement with US Secretary of Defense, Jim Mattis, and engagement at levels below, we will seek to sustain our existing relationships and build new ones to achieve this.

France

The bilateral defence relationship with France continues to deepen and broaden, and the Amiens Summit in March 2016 agreed a programme of further work. Core UK and French defence policy is closely aligned and policy engagement extends across almost all areas of defence policy, with a focus on NATO and on current strategic challenges. Military cooperation continues to deepen.

UK and French forces operate alongside each other in the Middle East as part of the coalition against Daesh. French forces will be supporting the UK-led NATO enhanced Forward Presence deployment in Estonia and UK forces will participate in French-led maritime deployments in Asian waters.

The UK is providing some logistic support to French operations in Africa and in response to industry requests our navies have established a merchant vessel reporting centre for the Gulf of Guinea, aimed at assuring maritime trade and improving the safety of the seafarer in the region.

The Combined Joint Expeditionary Force (CJEF) concept was successfully tested and validated in April 2016 in Exercise Griffin Strike and we are now taking forward a joint programme to develop it further in light of the lessons identified. Equipment cooperation includes the €2 billion programme to develop operational demonstrators by the mid-2020s for a possible future unmanned armed drone (the Future Combat Air System) with an extension of the current feasibility contract signed at the turn of the year, and we launched the next phase of our joint Maritime Mine Counter Measures project in October 2016.

We are also working together on a range of missile programmes, with ratification during the autumn 2016 of an enabling Inter Governmental Agreement allowing MBDA fully to implement its centres of excellence; on supporting our transport aircraft fleets; and to identify new areas of cooperation.

We are also working together on maintaining the safety and reliability of our nuclear stockpiles, through construction of a specialist facility in France and materials research cooperation at Aldermaston. We will continue to deliver a joint R&D programme with France which supports our military capability objectives.

Germany

SDSR15 committed to strengthening our defence and security relationship with this essential partner. The German Defence White Book published in July 2016, similarly committed Germany, for the first time, to further develop the UK-Germany bilateral relationship. Our relationship with Germany will be consistent with, and supportive of, our common position as leading European members of NATO.

The relationship continues to strengthen. We continue our programme of bilateral meetings at Secretary of State, ministerial and senior official / military levels hosted by our respective governments and in the margins of NATO, EU and other multilateral meetings. These meetings cover a range of areas of mutual interest (including NATO, EU, deterrence, migration, and defence and security reviews). Our troops, ships and aircraft operate alongside one another in a number of theatres, including in Afghanistan, the Mediterranean, off the Horn of Africa, and on counter-Daesh operations in the Middle East.

We are also working on opportunities to cooperate on military capabilities, innovation, and equipment. The UK has long worked with Germany on major common equipment programmes such as Tornado, Eurofighter, A400M and the Meteor air-to-air missile, helping to provide the bilateral relationship with a strong foundation. Both countries are now seeking to broaden this cooperation, and in 2016 established the Ministerial Equipment and Capability Cooperation (MECC) dialogue, led by the Minister for Defence Procurement and her German counterpart, to lead work in this area.

European Union and Brexit

The UK’s security and prosperity is inextricably linked to Europe, we are clear that the UK will remain fully committed to European security. While we remain a member of the EU, MOD commitments to EU missions and operations will remain in place. The UK increased its contribution to CSDP activity during 2016 by expanding support to Operation Sophia in the Mediterranean. It maintained its commitment to EUFOR Operation Althea in Bosnia Herzegovina and continued running EUNAVFOR Operation Atalanta’s Headquarters in Northwood. The UK continues to contribute to EUTM Somalia and EUTM Mali.

The Department for Exiting the EU (DExEU) is leading the negotiation process for the UK, and is working closely with the MOD. Senior level cross-government planning is underway, and within MOD the necessary working groups have been established in support.

The Gulf and North Africa

The National Security Strategy objectives to protect our people and interests, project UK influence and promote our prosperity are reflected in the extensive work over the past 12 months to develop deeper and broader defence relationships with countries across the Middle East and North Africa. This has ranged in scope from:

• forward basing of up to 1500 military and civilian defence personnel providing the deterrence, reassurance and readiness posture that protects UK citizens and the flows of energy and trade in the region
• greater permanence and efficiency of the defence footprint in the region whilst maintaining the agility to respond to an uncertain future; reinforcing the network of defence attachés and liaison staff including the new British Defence Staff in the Gulf region; direct support in multiple hotspots across the region to shore up fragile border security
• over 130 bespoke capacity building training teams deployed to the region covering increasingly high-end capabilities from Counter Improvised Explosive Device (C-IED) to trauma medicine
• nearly 400 individual training places on highly regarded defence courses in the UK
• more than 30 bi-lateral or multi-lateral exercises that develop regional and UK interoperability and engagement from working level to the highest levels of defence, including the Defence Secretary, for whom regular contact with regional leaders is fundamental to pursuing UK policy objectives in Yemen, Syria, Iraq and Libya
• during the winter of 2016-17 the UK exercised Command of Task Force (CTF) 50 in the Gulf. UK Command was invested in the Commander Amphibious Task Group (COMATG) embarked in HMS Ocean. CTF 50 is usually conducted by a US maritime staff as part of carrier Strike Group. Its execution by COMATG and HMS Ocean not only provides reassurance in the Gulf during the absence of a US Carrier Strike Group, it is also a significant step towards collaboration under the UK/US Statement of Intent on Carrier Strike cooperation as we build towards the inaugural operational deployment of HMS Queen Elizabeth in 2021

Whilst the region as a whole remains fragile, beset by persistent conflicts and significant instability, defence is working harder than ever to manage the clear existing risks to UK national interests and to help prepare regional security forces for the challenges ahead.

The Prime Minister attended the Gulf Cooperation Council Summit in Bahrain in December 2016. She delivered the keynote speech, developing ideas for mutual security, prosperity, and values. Addressing shared concerns about the impact of terrorism, extremist violence and ideology and organised crime, she discussed regional stability, security and building sustainable economies with GCC leaders.

Currently across the GCC, defence provides in the order of 100 specialist training teams each year and around 90 ship visits. There are over 500 defence personnel resident across the region on support teams and in excess of 300 more deployed on operations (UAE, Qatar, Oman), plus some 1200 afloat. The sum of the parts of our wide ranging cooperation is an impressive package of support training and collaboration.

Africa

We have continued to provide UK training and advisory support to the Nigerian armed forces to help Nigeria combat Boko Haram terrorists. Our resident British Military Advisory and Training Team continues to provide valued support, as does the additional Liaison and Support Team that provides specific military guidance. November 2016 saw the UK’s busiest period of capacity building in Nigeria, with over 100 personnel deployed on seven concurrent tasks, including the Royal Air Force Regiment deploying a 70 strong short term training team (STTT) to Nigeria, the largest STTT that the UK has yet deployed to this country.

Last year we committed to provide training and assistance to help the Sierra Leone armed forces re-establish its previous ability to deploy personnel on peacekeeping missions, which in time will allow Sierra Leone to once more make a positive contribution to wider regional and African peace and stability. In November 2016 the Queen’s Dragoon Guards conducted jungle training with the Republic of Sierra Leone Armed Forces (RSLAF) at the Sierra Leone Jungle Training School, the first time that this facility has been used since the Ebola outbreak in 2014.

The UK also continues to provide strategic airlift support to French operations in Africa in response to French requests for assistance following the terrorist attacks in Paris in November 2015. Together with the US and France we are also supporting the countries of the Lake Chad region in their efforts to coordinate action against Boko Haram.

The MOD continued to contribute to the government’s Somalia strategy. We have worked to improve the capacity of the African Union’s peace support mission in Somalia, including through the provision of training and mentoring across East Africa to the troop contributing countries of the African Union Mission in Somalia. Additionally, we have provided military personnel to the United Nations Support Office in Somalia in order to assist with bringing greater cohesion to the international response in-country, and provide policy advice to the Federal government of Somalia and AMISOM on peace building and state building.

In October 2016 the UK-Kenyan Defence Co-operation Agreement (DCA) came into force after ratification by both national parliaments, securing access to the British Army Training Unit Kenya at Nanyuki. Following this, the inaugural Defence Staff Talks were held in Nairobi in December 2016.

In June 2016 a small military team deployed to South Sudan as the beginning of the UK’s increased support to the UN Peacekeeping Mission in South Sudan. This is planned to be an uplift of up to 400 extra personnel, who will focus on improving the infrastructure of UN Protection of Civilians camps, and build a field hospital for UN troops. The UK has also provided mission specific training to a number of African armed forces ahead of deployments on UN and African Union peace support operations.

The expansion of defence’s network in Africa has continued, with the establishment a 1-star British Defence Staff West Africa in Abuja in December 2016. Plans to create a new Defence Adviser Senegal in January 2017 and a military liaison officer in Cameroon in April 2017 remain on track and will further improve our understanding across the region.

Asia Pacific

The UK has continued to build defence relationships throughout Asia Pacific through engagement activities (for example English language training for peacekeeping) with nations’ armed forces, as set out in the SDSR15 commitment to strengthen engagement in the region. Japanese Ground Self-Defence Force troops conducted their first ever deployment to the UK when they took part in Exercise Vambrace Warrior in September 2016.

Two major RAF deployments have taken place across the region. Exercise Eastern Vortex saw RAF Typhoon, Voyager and A-400M Atlas aircraft deploy to undertake: a Five Power Defence Arrangements exercise in Malaysia alongside Malaysian, Australian, Singaporean and New Zealand forces in October 2016; a bilateral exercise with the Japanese Air Self Defence Force in October and November 2016; and a joint exercise with the Republic of Korea Air Force and US Air Force in Korea in November 2016. Exercise Eastern Hawk, the RAF Aerobatic Team (the Red Arrows) deployment, also visited the region, with engagement, displays and support to the prosperity agenda in numerous countries. The Red Arrows paid their first ever visit to China, where they performed at Airshow China in Zhuhai in November 2016.

Other activity with Japan included the conclusion of negotiations on an Acquisition and Cross-Servicing Agreement, a successful High Level Defence Equipment and Technology Cooperation Steering Panel in October 2016, and continued cooperation on topics including mine counter-measures, counter terrorism, cyber security and cooperation on safety and security for the 2020 Tokyo Olympic Games.

We opened one of our new British Defence Staffs, in Singapore, in December 2016. Its role will be to support Defence Engagement activity across the region, and contribute to efforts to build defence institutions. We continue to work closely with a number of countries in the region, including Australia and Japan, on equipment and capability development. The annual Australia-UK Ministerial meeting in September 2016 endorsed the forward work programme across the areas of strategy, capability, management and people.

India

As agreed by the 2 Prime Ministers in November 2016, we have taken further steps to build closer practical cooperation with India under the auspices of the 2015 UK-India defence and international security partnership.

The bilateral Defence Consultative Group met on the 15 and 16 of November 2016 and agreed a series of capability partnerships across the maritime, land, air and joint domains, encompassing areas such as military to military cooperation, training and exchange of subject matter experts, research and technology linkages as well as defence manufacturing.

We have also agreed to deepen cooperation in other areas, including cyber security, defence transformation and countering terrorism, radicalisation and violent extremism. The RAF Aerobatic Team (the Red Arrows) performed a series of displays across India during October and November 2016 as part of Exercise Eastern Hawk, and the Royal Navy exercised with the Indian Navy in India during Exercise Konkan in December 2016.

Sri Lanka

As announced at the Commonwealth Heads of Government meeting in November 2015, the UK has re-established defence relations with Sri Lanka by appointing a non-resident Defence Adviser, who is now in post and implementing a ministerial approved programme of defence engagement activity. This appointment is enabling the UK to work with the Sri Lankan armed forces on issues of reconciliation, accountability and human rights.

Latin America and the Caribbean

Following SDSR15 we have re-established the British Army’s jungle training facility in Belize. We expect up to 2000 British troops to pass through the British Army Training Support Unit Belize (BATSUB) this year, and we plan on extending courses at BATSUB to the armed forces and coastguards of Caribbean countries. A Royal Navy Frigate (HMS Portland) and Royal Fleet Auxiliary tanker (Gold Rover) took part in Chile’s prime naval exhibition, Exponaval, in Valparaiso in late November / early December 2016 alongside vessels from other regional countries.

The Caribbean Nations Security Conference in December 2016 saw progress made in dealing with trans-national and trans-regional threats. We have extended the non-resident accredited footprint of our defence attaché in the Caribbean to the eastern Caribbean.

Defence engagement

Defence Engagement is the use of our people and assets to prevent conflict, build stability and gain influence. As announced in SDSR15 we have made defence engagement a funded, core MOD task for the first time, meaning that the armed forces will prioritise defence engagement alongside other core tasks. This commitment was enshrined in ‘Defence Strategic Direction’ and is refined annually in the ‘Defence Plan’, allowing us to resource, plan and implement the expansion of our Defence Attaché network, the establishment of the Defence Attaché and Loan Service Centre in our Defence Academy, the activities already outlined in this chapter, and those detailed below.

As announced by the Prime Minister in December 2016, British Defence Staffs (BDS) have been established in the Middle East (Dubai), Asia Pacific (Singapore) and Africa (Abuja), where they each have a regional role. They are a focal point for the often significant investment that defence has made in these regions, bringing coherence and adding impact by coordinating our actions and our messaging. Training of BDS staff and installation of secure communications remain on track for the BDS to be fully functional by summer 2017.

We have increased the overall number of international places being offered on our flagship International Defence Training (IDT) courses, including the Royal College of Defence Studies, Higher Command and Staff Course, Advanced Command and Staff Course, RAF Initial Officer training and the Royal Marines Young Officer course. We have piloted the new International Senior Strategic Leadership Programme and International Strategic Planning courses, introduced a RN International Officers’ course, and added an international place to the Chief of the Air Staff’s Fellowship Programme at Exeter University. In addition, the single services and JFC have all increased the number or ratio of international student places on a wide range of other sought after training and education courses.

IDT is recognised as a key element of defence engagement, impacting and contributing to defence diplomacy, capacity building, security sector reform, conflict prevention and stabilisation. UK IDT is highly prized, and provision of places may assist in delivering immediate improvements in bilateral relations or secure specific short term goals, particularly in countries where the military are influential and/or defence is a significant element of wider UK engagement. Training teams can also offer very specific and immediate benefits, for example helping to prepare forces which are to deploy on peacekeeping missions or improving the capacity of partners to deal with internal security challenges. IDT courses help to develop strategic leadership skills, improving defence management and ability to deal with conflict and security challenges, whilst promoting responsible approaches to the planning of defence activity, for example with relation to accountability, transparency & corruption, gender & conflict, human rights and humanitarian law.

3. Promote our prosperity

Lead minister: Rt Hon Michael Fallon KCB MP
Lead officials: Director General Security Policy/Director General Head Office and Commissioning Services/Chief of Defence Personnel/Chief Scientific Advisor

3.1 What MOD is doing

We will contribute to the UK’s economic security, support our industry including through innovation and exports, continue to invest in science and technology and contribute to wider skills and citizenship development that supports British society, through cadet forces, university units and investment in skills, including through apprenticeships. By investing in science, technology and innovation we are supporting the UK Industrial Strategy by contributing to a world leading UK research base that has a strong focus on commercial exploitation. We will:

• releasing surplus MOD land to support new housing
• promote defence exports with UK Trade & Investment
• spend 1.2% of the defence budget on science and technology
• increase the proportion of MOD spend with SMEs to 25% by 2020
• launch a defence innovation initiative to remain in step with our allies and ahead of our adversaries
• contribute to the wider UK’s skills agenda
• continue to seek value for money in defence procurement, recognising the important contribution that the UK defence industry makes to our prosperity.
• increase the number of cadet units in schools

3.2 How MOD is doing

Land for housing

the MOD has committed to releasing public sector land for up to 55,000 new homes

On 7 November 2016, the Secretary of State for Defence announced an ambitious change programme to deliver a better defence estate and will concentrate investment around a significantly smaller, estate which more effectively enables military capability and meets the needs of the armed forces as set out in the Strategic Defence and Security Review 2015.

The estate optimisation programme will release 91 major sites, generating an additional £1 billion of disposals over the next 10 years for investment in the retained estate. This major release of public sector land will provide potential to build up to 55,000 new homes and contribute to the government’s wider target of land for 160,000 by 2020.

Director Prosperity and International Business

The Director Prosperity and International Business (DPIB) role was created to lead on the implementation of the SDSR prosperity agenda. The remit of the post is to identify and implement means of increasing opportunities for UK companies, through the identification of where value can be added in UK acquisition decisions and in supporting UK supply chain competitiveness. In addition, the role is responsible for growing the defence contribution to the wider UK economy and making the UK an attractive location for defence investment. DPIB is the lead for export policy and is tasked with delivering winning strategic industrial export campaigns, enhancing exportability of UK defence equipment and building and diversifying the future exports pipeline. As of October 2016 the role also includes industrial policy.

Exports

MOD is committed to enhancing its support to UK defence exports, which is now a core task for the department reporting to the Director Prosperity and International Business. For exports of UK in-service equipment, MOD is a source of unique support that is often a key discriminator in the eyes of the customer. For this reason MOD assumed responsibility in November 2015 for strategic export campaigns where the department holds the key levers of influence, namely Typhoon, Complex Weapons and F-35 support. In November 2016 the UK was chosen by the F-35 Program Office to be a global repair hub providing maintenance, repair, overhaul and upgrade services for F-35 avionic and aircraft components which will unlock hundreds of millions of pounds of revenue for the UK defence industry. The UK proposal was based on an innovative partnership between government and industry which was led by the department. In order to ensure that equipment in development for the UK armed forces is positioned to best respond to future export requirements, MOD is embedding ‘exportability’ into its procurement processes to ensure that resulting capabilities allow for parallel export opportunities to be pursued from the beginning of the acquisition cycle. This will allow the department to better support the wider objective of internationalising our equipment capability strategy and underpin key strategic security relationships through increased dialogue and interoperability. Similarly, through economies of scale and shared fixed assets, exportability can provide opportunities to reduce domestic acquisition costs and de-risk the equipment programme.

Trade, industry and contracts

Every year, the MOD publishes economic data on its trade, industry and contracts activity and progress. The latest data was published in August 2016.

Innovation, science and technology

SDSR15 recognised a significant shift in the strategic landscape; in both the adversaries we face and partners with whom we can work to deliver our military edge, and protection of the Homeland. In response, MOD launched a Defence Innovation Initiative on 16 September 2016, which outlined plans for new innovation infrastructure and associated funding. We are on track to deliver this initiative.

The launch outlined defence’s vision for innovation, our goals and objectives, and how we plan to organise to deliver against those goals and objectives, including working with external partners in academia, industry and international allies. The launch included a clear outline of the innovation infrastructure we will put in place to meet our most pressing challenges now, and into the future. It acted as an opportunity to reach out to non-traditional suppliers, and begun to break down some of the barriers associated with working with defence and security.

Number of apprentices

50,000 apprentices will be trained by MOD by 2020

The armed forces and Civil Service offer a viable alternative to Higher Education and Further Education (HE/FE) and provide apprenticeships at various levels (mainly Intermediate, but also Advanced and Higher). Apprenticeships and subsequent opportunities to gain further recognised civilian qualifications, through career training and elective learning, build the potential for a long and fulfilling career. The armed forces offer apprenticeships to ensure a capable workforce and importantly to equip individuals for a life beyond service; civil servants in the MOD also benefit both at entry level, by being trained in a professional pathway and also by benefiting from apprenticeships throughout their careers as an opportunity to upskill and formalise qualifications in a way recognised by the Private Sector. It was announced in SDSR15 that we will deliver at least 50,000 apprentice start ups in Defence between 2015 and 2020.

Cadet units in schools

350 number of parading cadet units in schools (as at October 2016)

The government has committed to increase the number of cadet units in schools across the UK to 500 by 2020 through the Cadet Expansion Programme. The programme is on track to meet this target, and interest from schools remains high.

The MOD sponsors 4 different cadet forces which are located both in the community and in schools: the Sea Cadet Corps, the Combined Cadet Force, the Army Cadet Force and the Air Training Corps. These voluntary youth organisations offer challenging and enjoyable activities which provide young people with both personal and social development

Education outreach

The MOD has operated an Education Outreach programme for the last 15 years, working with thousands of young people each year and raising aspirations, teaching employability skills, and providing an insight into life in government. The programme is nationwide and visits young people in schools and colleges around the country, as well as hosting young people who have never been to London in the MOD Main Building and in Parliament.

4. Maintain a strategic base and integrated global support network, and manage the Department of State

Lead minister: Rt Hon Michael Fallon KCB MP
Lead officials: Chief of Defence People, Deputy Chief of Defence Staff (Military Capability), Director General, Head Office and Commissioning Services/Director General, Finance

4.1 What MOD is doing

We will maintain an agile strategic base and global support network that enables the command, generation, preparation, projection, sustainment, maintenance, operation and redeployment of military capability in support of the defence objectives. This reflects the nature of the department as a strategic military headquarters as well as being a department of state. We will command UK military operations worldwide, while providing the necessary enablers such as infrastructure, equipment, logistics and medical. We will:

• implement the Strategic Defence and Security Review (SDSR)
• Spending £178 Billion over 10 years on equipment and support (IPA reports)
• provide more opportunities for talented people from all communities and walks of life to serve their country by increasing our recruitment of female and Black, Asian and Minority Ethnic (BAME) personnel by 15% and 10% respectively
• implement the accepted recommendations of Lord Ashcroft’s Veterans’ Transition Review on the way the nation fulfils its obligations to veterans
• work to address hearing loss among veterans
• help more servicemen and women to buy their own home through our £200 million Forces’ Help to Buy scheme, which we have extended out to 2018
• continue to support the unsung heroes of the armed forces community: the partners and families of those who serve by supporting the implementation of the Armed Forces Covenant and the wider armed forces community, families and veterans

4.2 How MOD is doing

Equipment and support

The estimated equipment and support expenditure forecast for the financial year 2015 to 2016 is £14.7 billion.

• Ministry of Defence Annual Report and Accounts 2015 - 2016

Armed Forces Covenant

Our commitment to support the armed forces, enshrined in law in 2011, was set out in the Armed Forces Covenant; the promise from the Nation that those who serve or who have served, and their families, are treated fairly. Every local authority in mainland Great Britain, and four in Northern Ireland, and nearly 1,400 businesses have signed covenant pledges to support the armed forces community. Since 2011 the government has committed over £273 million to deliver the Armed Forces Covenant, in addition to regular departmental expenditure. We manage a £10 million annual Covenant Fund; distributing funding to organisations that support the armed forces community; and manage a £30 million Aged Veterans’ Fund (distributed over 5 years to support veterans’ non-core health and social care, and wellbeing needs). A new service, the Veterans’ Gateway, is being developed and will launch this year. A grant has been made through this £2 million programme to a consortium of charities led by The Royal British Legion to set up a one-stop service to better support the veteran community. The new service will provide a 24/7 phone service, with an empathetic and professional voice at the end of the line, a dedicated website and a mobile app to make it easier for ex-service personnel to access support on a range of issues. It will give veterans, regardless of age or location, a simple point of contact to turn to for advice and help in accessing an array of public, private and charitable services. Improving communications on the covenant is a priority.

Steps we have taken include: in January 2016 the Armed Forces Covenant was re-launched under a new brand; MOD chairs the Cross-Government Covenant Communications Group; and on 22 April 2016 we launched a dedicated covenant campaign website. We also nominated and inducted nearly 200 Armed Forces Covenant champions across our armed forces units to act as a focal point within their service unit to co-ordinate covenant work and help us better deliver the covenant message direct to our personnel and their families. One of their key roles will be to feed the concerns of the armed forces community back to the MOD so that we can share them with other stakeholders and resolve them together.

The Armed Forces Covenant Annual Report 2016 outlines future plans for addressing disadvantage and ensuring fairness for the armed forces community. A new Inter-Ministerial Group on the covenant will be launched in early 2017.

The armed forces offer

Defence needs to transform to become a modern, inclusive employer, which better attracts, retains and values its people, makes the best use of their talent, and empowers them to provide their service more flexibly. We are, therefore, developing a Flexible Engagements System (FES), which will enable regular service personnel to work part-time, as well as the scope to temporarily adjust deployment liabilities, in order to support their personal circumstances. FES will also provide improved opportunities for reservists to be employed in higher commitment jobs where appropriate. The FES requires primary legislation and will be brought before Parliament to consider in 2017.

The provision of affordable, good quality accommodation is central to our Offer to Service personnel. We recognise that current accommodation provision does not support how all Service personnel might choose to live, forcing some to opt out of subsidised accommodation, or compromise on family life, and is unsustainable for defence. The Future Accommodation Model (FAM) aims to deliver greater choice and better support for people to get the housing they need, regardless of age, rank, or relationship status, whilst still fulfilling the needs of the services. We are seeking the views of our people to shape their future accommodation offer, and the results will inform our plans for rolling out the new policy from 2018 onwards.

The MOD is currently considering options for a new offer for future recruits, the New Joiner Offer. We are developing a more efficient method of targeting reward, so that it better matches what service personnel want at different stages of their career and life. This project has the twin aims of improving recruitment and retention, particularly of key skills (and improve agility to respond to future skill shortages) and also reducing costs in the overall reward package for service personnel. Policy development is at an early stage; the outline design of the New Offer was agreed by the Armed Forces’ People Committee in December 2016 and the implementation timescales are now being scoped.

Recognising that retaining service personnel, particularly those with highly sought expertise, cannot be achieved by palliatives such as Financial Retention Incentives alone, the Enterprise Approach project aims to improve the retention of critical skills by delivering the framework necessary to offer portfolio career pathways within the defence sector. This is being developed by a joint MOD and Maritime Industry team during an extended concept phase ending in April 2018. This will assess the feasibility of allowing the movement of personnel to the part of the defence sector where their skills are needed the most, underpinned by Cost Benefit Analysis.

Progress towards Lord Ashcroft’s recommendations

On 11 February 2014 Lord Ashcroft published his Veterans’ Transition Review in which he made 62 recommendations on how government could better support armed forces personnel make the transition from their military careers to civilian life at the end of their service. The follow-up report was published in November 2016. 12 of the remaining 16 open recommendations were closed in January 2017.

Workforce dynamics and diversity

We are committed to achieving an inclusive working environment and to building armed forces that are diverse and appropriately represents the breadth of UK society. The Defence Diversity and Inclusion Programme aims to provide a step change in our diversity and inclusion and it has been reinforced by work to achieve the recruitment target set by the previous Prime Minister of 10% Black, Asian and Minority Ethnic personnel (BAME) intake to the armed forces by 2020 (rising to 20% thereafter) and an internally set target for 15% intake of women in the same timescale. For some years, as part of defence’s ongoing commitment to increase the diversity of its military personnel, the 3 services have continued to work hard to increase the numbers of under-represented groups they recruit and retain as part of the workforce. However, it is clear that the external and internal cultural change required to meet the challenging targets demand new approaches and initiatives to ensure that diversity considerations become an integral part of normal recruiting business. Even with these, the targets remain a very significant challenge for all 3 services.

On 8 July 2016 Prime Minister announced that he agreed with advice from, and accepted the recommendation of, the Chief of General Staff that the ban on Women in Ground Close Combat Roles should be lifted. Combat roles will now be opened to women in a phased approach over the next 3 years.

Figures are updated and published every May and November on our UK armed forces biannual diversity statistics: 2016 page.

Percentage of female and BAME personnel joining ^2,4,5 the UK regular forces ¹ / FR20 Volunteer Reserves ³ for the year ending 30 September 2016

	Percentage of female personnel joining	Target percentage of female personnel joining by 2020	Percentage of BAME personnel joining	Target percentage of BAME personnel joining by 2020
UK regulars and FR20 Volunteer Reserves	11.5%	15%	5.8%	10%
Royal Navy / Royal Marines and Maritime Reserve	10.9%	-	2.9%	-
British Army and Army Reserve	10.5%	-	6.9%	-
RAF and RAF Reserves	16.8%	-	4.0%	-

^{Source: Defence Statistics (Tri-Service)}

• 1: UK regulars comprise full time service personnel, including nursing services, but excluding Full time Reserve Service (FTRS) personnel, Gurkhas, mobilised reservists, Military Provost Guard Service (MPGS), Locally Engaged Personnel (LEP), Non Regular Permanent Staff (NRPS), High Readiness Reserve (HRR) and Expeditionary Forces Institute (EFI) personnel. Unless otherwise stated, includes trained and untrained personnel.
• 2: Intake to UK regular forces comprises new entrants, re-entrants, direct trained entrants (including Professionally Qualified Officers) and intake from the reserves. It excludes all movements within the regular forces; including flows from the untrained to trained strength, transfers between services and flows from ranks to officer due to promotion.
• 3: FR20 Volunteer Reserve comprises volunteer reserves, including mobilised volunteer reserves, High Readiness Reserves (HRR), volunteer reserves serving on Full Time Reserve Service (FTRS) and Additional Duties Commitments (ADC). Non Regular Permanent Staff (NRPS), Expeditionary Forces Institute (EFI), Regular Reserves, Sponsored Reserves, Honorary Reserves and University Officer Cadets are excluded.
• 4: Intake to FR20 Volunteer Reserve forces comprises new entrants, regular to reserve transfers, reserve re-joiners, and reserve personnel joining from another part of the reserves that are not included in the FR20 target population.
• 5: A total of 96.0 per cent of intake into the UK regular forces and the FR20 Volunteer Reserve combined, had a known ethnicity on intake, in the 12 months to 31 March 2016.

Percentage of female and BAME (Black, Asian and Minority Ethnic) personnel in the UK regular forces ¹ and FR20 Volunteer Reserves ² as at 1 October 2016

	Percentage UK regular forces who are female	Percentage FR20 Volunteer Reserves who are female	Percentage UK regular forces who are BAME	Percentage FR20 Volunteer Reserves who are BAME
Total	10.2%	13.8%	7.0%	5.3%
Royal Navy / Royal Marines and Maritime Reserve	9.3%	14.9%	3.5%	2.8%
British Army and Army Reserve	9.0%	13.1%	10.2%	5.7%
RAF and RAF Reserves	14.0%	20.1%	2.2%	4.3%

^{Source: Defence Statistics (Tri-Service)}

• 1: UK regulars comprise full time service personnel, including nursing services, but excluding Full Time Reserve Service (FTRS) personnel, Gurkhas, mobilised Reservists, Military Provost Guard Service (MPGS), Locally Engaged Personnel (LEP), Non Regular Permanent Staff (NRPS), High Readiness Reserve (HRR) and Expeditionary Forces Institute (EFI) personnel. Unless otherwise stated, includes trained and untrained personnel.
• 2: Non Regular Permanent Staff (NRPS), Expeditionary Forces Institute (EFI), Regular Reserves, Sponsored Reserves, Honorary Reserves and University Officer Cadets are excluded.

SDSR implementation

The government will publish an annual report on SDSR implementation later this year.

5. Efficiency portfolio

What MOD is doing

In the 2015 Spending Review the government confirmed its commitment to spend 2% of GDP on defence for every year of this decade, and that the MOD’s budget would rise by 0.5% above inflation every year to 2020/21. It was also confirmed that the efficiency savings delivered during the Spending Review could be re-invested into defence’s highest priority capability needs. We remain committed to delivering these efficiencies and, in doing so, reducing our operating costs over this Parliament, whilst continuing to improve the effectiveness of our services through:

• military pay and manpower: in addition to the 1% cap on public sector pay awards over the next 4 years, we have also conducted a further review of military pay to ensure the continuing efficacy suitability of the military allowances package. Amendments have been made to a small number of contributory allowances as a result of this review, these amendments came into effect on 1 April 2016, and the department is confident that these changes ensure that military allowances continue to be effective without adversely affecting recruitment and retention.

• civilian pay and manpower: in addition to the 4 year 1% cap on public sector announced in the Spending Review, the department will reduce the number of civilians employed by the MOD by around 30%, to 41,000, by 2020/21. Work is ongoing to assess how these reductions will be implemented

In addition, we will explore opportunities to make further changes to the way we work and what civilians do in the department, considering where we can innovate or deliver outputs differently.

• equipment: we will continue to build on our strong track record of making efficiencies within our equipment programme, by supporting a better service via the managed service providers in Defence Equipment and Support (DE&S), driving value for money in single source defence contracts through implementation of the Single Source Contract Regulations, a continuation of the recent equipment support costs review, and the transformation of defence logistics

• estate and infrastructure: defence is committed to delivering a significantly smaller, more efficient, and better quality estate, that continues to provide a safe and effective place for military users to live, work and train whilst also meeting the needs of Joint Force 2025 (JF2025). We will reduce the built estate by 30% by 2040, and release public sector land for 55,000 new homes in this Parliament

• other areas of spending: we will look to bear down, where appropriate, on other areas of non front-line expenditure; in particular on business travel costs, professional fees, non-operational training costs as well as our PFI projects. We will also continue to deliver savings in our commercial relationships, including by working with the Crown Commercial Service to reduce the Department’s spend on common goods and services

How MOD is working collaboratively across government

We will work collaboratively with Cabinet Office, HM Treasury and other government departments to deliver transformational change in key areas, including:

• developing digital solutions that meet common standards set by the Government Digital Service and utilise cross-government platforms such as GOV.UK Verify, GOV.UK Pay or GOV.UK Notify as part of departmental digital services wherever this demonstrates the best value money solution for government

• rationalising our estate in a joined up way, looking to develop ‘government hubs’ with other government departments, releasing land for housing where possible and participating in the development of the new commercial property model

• delivering savings in our commercial relationships including through spend on common goods and services, delivered in partnership with Crown Commercial Services

• working in partnership with: the Cabinet Office to deliver arm’s length bodies (ALB) transformation plans; Infrastructure and Projects Authority on major projects programmes and prioritisation; and reducing losses through fraud and error alongside developing a debt management strategy

We will establish new policy-making and delivery Joint Units in 2016:

• the Counter Proliferation and Arms Control Centre (CPACC), hosted by the MOD, and the Export Control Joint Unit (ECJU), hosted by Department for International Trade (DIT), went live in July 2016

• the Joint Units on Euro-Atlantic Security Policy (EASP) and UN Peacekeeping (UNPK) went live in October & December 2016

• a single provider of Government National Security Vetting Services, based on the MOD model, was stood up on 1 January 2017. The transfer of FCO Services vetting staff into DBS on 1 January 2017 marked the vesting date of UKSV , as the single provider of National Security Vetting, and met the stated SDSR deadline completing the first phase of transitional activity

Strategic objectives	Metrics	Frequency	Source
1 – Protect our people	Number of trained military personnel regular and reserve	Monthly Official Statistic	Defence Statistics Tri – Service Personnel Statistics
	NATO 2% Target	Annual (June)	NATO Statistic
	UK’s Future Nuclear Deterrence: Annual update to Parliament	Annual (December)	MOD
	[Narrative updates]	Quarterly
2 – Project our global influence	[Narrative updates]	Quarterly
3 – Promote our prosperity	Number of parading cadet units in schools	Bi-annually	Reserve Force and Cadets Team Departmental Plan 2015 to 2020
	[Narrative updates]	Quarterly
4 – Maintain a strategic base and integrated global support network, and manage the Department of State	Percentage of UK regular forces and reserves personnel/MOD civilians who are female	Military: bi-annual Official Statistic. Civilian: bi-annual Official Statistic	Military: Defence Statistics Tri - Biannual diversity statistics. Civilian: Defence Statistics Civilian. Biannual civilian diversity dashboard.
	Percentage of UK Regular Forces and Reserves personnel / MOD civilians who are BAME (Black, Asian and Minority Ethnic)	Military: bi-annual Official Statistic Civilian: bi-annual Official Statistic	Military: Defence Statistics Tri - Biannual diversity statistics. Civilian: Defence Statistics. Civilian - Biannual civilian diversity dashboard.
	Number of civilian employees by the MOD	Quarterly Official Statistic	Defence Statistics Tri - Quarterly civilian personnel report
	Defence Equipment Plan	Annual (October)	MOD Defence Equipment Plan
	Government Major Projects Portfolio	Bi-Annual (April and September)	Infrastructure and Programmes Agency Major Projects Portfolio
	Armed Forces Covenant annual report	Annual (December)	MOD Armed Forces Covenant annual report
	[Narrative updates]	Quarterly

The MOD will update this document in June 2017.