Question to the Ministry of Defence:

To ask the Secretary of State for Defence, with reference to page 145 of his Department's annual report and accounts 2019-2020, for what reason the project to procure a new information system was terminated with a loss of £4 million.

Constructive Loss - Advance Notification: Cessation of a project to procure a new information system (IS) (£4.059 million)

The loss value relates to capital investment expenditure on the development of a new IS focussed on specialist ISR capabilities system between 2014-15 to 2016-17.

The project was paused while other options were investigated and it was ultimately decided not to pursue the project further noting that due to the rapid pace and change in technology in the area covered by the project, the previous development work was now out of date.

The decision to 'pause' the project was therefore in practical terms one of cessation which has led to a constructive loss. Accounting action was taken during 2019-20 to impair the full balance of £4.059 million.