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With all of the "elation" about the extra money for defence (holding breath not advised at this stage...), there has been arguably one of the major changes in how capital spending is regulated and driven. The infamous Treasury Green Book has been reviewed, and in a dramatic way.
The Green Book has been used, in defence circles, anyway, to say that any capital procurement can only be assessed on "value for money basis", which in turn will be based on a Benefit Cost Ratio...
I can't think of the times that I've heard UK-based industry being told by the MoD/DE&S, "we can't take jobs into account - Green Book, you see. No, we just have to go for VFM..."
The starting point of the Green Book is review is pretty damning: the current cost-based investment process warps the decision-making process, and frequently does not match government policy.
And the issue of government policy is interesting - it ought to be at the heart of all investment decisions in some form. Note that "government policy" referred to in the Review is common across Whitehall: jobs, levelling-up, prosperity agenda.
And note this seemingly new phrase: "Placed Based Strategy". Yes, in some ways, this is to refer to local government spending - but it also seen as a pan-Whitehall objective. Basically, for defence spending, where the money gets spent is now important
And (Heaven help us!) HMT wishes to see more transparency in procurement decisions! Note the belief that opaque processes make for bad decisions, and reduce overall confidence that the right decisions are being made. This will have a massive impact on defence procurement.
Put simply, this is one of the biggest changes in how Whitehall operates that I've seen for decades - and the impact on defence will be massive. Yes, I can already hear people saying, "MoD should not be restricted in how it procures.."
Well, the Green Book Review says that there is a new sheriff in town, and new rules. And recall: these are being brought in by a Tory government - I can't see a Labour one over-turning them, so the MoD/DE&S better get used to them.
So, in the future, investment/procurement decisions will not, cannot be based "just" on often-bogus BCR/VFM assessments, but instead on the wider government policy of jobs, balancing up/levelling up, and only if these are met can/should a BCR/VFM assessment go ahead.
Basically, if you're not onshore, you're not going to be in the game.
@nicholadrummond @IanNicholsonIP @thinkdefence @wavellroom @Rotorfocus @GarethJennings3 @GazTheJourno @SheridanDani @larisamlbrown @peggyhollinger @ianwaddell_CSEU @IBallantyn @SteveT_Unite @BeaverWestminst
@nicholadrummond @IanNicholsonIP @thinkdefence @wavellroom @Rotorfocus @GarethJennings3 @GazTheJourno @SheridanDani @larisamlbrown @peggyhollinger @ianwaddell_CSEU @IBallantyn @SteveT_Unite @BeaverWestminst
