Defence: Finance

(asked on 22nd July 2026) - View Source

Question to the HM Treasury:

To ask His Majesty's Government what plans they have to meet the efficiency savings outlined in the funding package for the Defence Investment Plan.


Answered by
Lord Pitt-Watson Portrait
Lord Pitt-Watson
Parliamentary Secretary (HM Treasury)
This question was answered on 30th July 2026

Defence will deliver £10.7 billion of efficiencies and savings over the Parliament, including through a reshaped civilian workforce, accelerated use of AI, £1 billion of savings from reduced reliance on consultancies, and rationalisation of the MOD estate. This will be underpinned by a £500m Transformation Fund to deliver productivity improving investments in AI and workforce transformation

The plan will be subject to an annual update to Parliament before summer recess, audited by the NAO, with the first update due by July 2027.

A further breakdown of the Defence Reform and Efficiency Plan can be found on page 73 of the Defence Investment Plan, available on the government website.

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