Question to the Ministry of Defence:

To ask the Secretary of State for Defence, with reference to his Department's Annual Report and Accounts 2025-2026, HC 389, published on 15 July 2026, what the nature is of the fruitless payment for Departmental Cash Forecasting Performance 2025-26.

HM Treasury monitors departmental cash forecasts on a monthly basis. Where forecasts exceed a tolerance of plus or minus 5%, departments are required to pay a penalty. The £1.957 million value reported in 2025-26 represents the cumulative value of monthly penalties incurred during the financial year where forecasts fell outside the permitted tolerance.

The Ministry of Defence continues to work to improve the timeliness, quality and accuracy of its cash forecasting processes. Due to the scale, complexity and diversity of Defence activity, forecasting can be challenging, especially given the impact of operational requirements, which can change at short notice.