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Ministry of Defence Annual Report and Accounts 2016 to 2017 (Web Ministry of Defence Annual Report and Accounts 2016-2017 Ministry of Defence Annual Report and Accounts 2016-17 For the year ended 31 March 2017 Accounts presented to the House of Commons pursuant to section 6(4) of the Government Resources and Accounts Act 2000 Annual Report presented to the House of Commons by Command of Her Majesty Ordered by the House of Commons to be printed 19 July 2017 HC 21 © Crown copyright 2017 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected]. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. This publication is available at www.gov.uk/government/publications Any enquiries regarding this publication should be sent to us at: [email protected] Print ISBN 9781474147712 Web ISBN 9781474147729 Printed in the UK by the Williams Lea Group on behalf of the Controller of Her Majesty’s Stationery Office ID 04071701 07/17 Printed on paper containing 75% recycled fibre content minimum Contents Performance Report Overview Foreword by Secretary of State for Defence 8 Introduction from the Permanent Secretary and Chief of Defence Staff 9 Our Vision 10 Strategic Objectives – Notable Achievements 11 Financial Summary 14 Departmental Structure 15 Performance Analysis Strategic Objective – 1: Protect Our People 21 Strategic Objective – 2: Project Our Global Influence 39 Strategic Objective – 3: Promote Our Prosperity 51 Strategic Objective – 4: Maintain a strategic base & integrated global support network, and manage the Department of State 58 Financial Review 76 Accountability Report Corporate Governance Report 80 Remuneration and Staff Report 100 Parliamentary Accountability and Audit Report 116 Annual Accounts Financial Statements 137 Notes To The Accounts 143 Annexes Statement of Approved Maximum Armed Forces Numbers 195 Correspondence 198 Sponsorship Agreements 201 Core Tables 203 Performance Report 5 6 Annual Report and Accounts 2016-2017 Overview 7 Foreword by Secretary of State for Defence The past year has been very busy with our Armed Forces involved in over 25 operations around the world. We have played a major role in the fight against Daesh with the Royal Air Force operating at their highest tempo in 25 years; the Royal Navy have been committed across the globe including helping to tackle the migrant crisis; and our Army have been developing the capability and capacity of the Iraqi Forces and sustaining NATO operations in Afghanistan. Our activity has had considerable success – in Iraq, 63% of the territory Daesh once controlled has been retaken; and in Syria, Daesh have lost around 35% of the territory they once controlled. We continue to meet the NATO guideline to spend 2% of Gross Domestic Product on Defence and to mark our commitment to European and wider security, standing with our allies in the face of increasingly diverse challenges. We also stand ready to support the police in response to major terrorist incidents or threats. In addition to operations, there have been a number of important events during the past year. In July 2016 Parliament debated and overwhelmingly voted to support the principle of maintaining Continuous At Sea Deterrent (CASD) and building the four new submarines. This was an important step forward and I cut steel on HMS Dreadnought in October. July also saw publication of the Chilcot Report, where we have been working hard to develop actions to address the findings. In October we set out our intention to derogate from the relevant Articles of the European Convention on Human Rights in future conflicts, countering the real risk that these articles pose to our armed forces being able to do their job. 2016 was also the year we laid important foundations for our future force. We are committed to developing an adaptable Joint Force by 2025 with a broad range of capabilities, capable of protecting the UK and overseas Territories, of projecting UK influence and promoting UK prosperity. We are investing billions to give our people the latest frigates, attack helicopters, armoured vehicles, and cyber technology. This year and next year promise to be even busier. As we leave the EU, we will embrace the world and seek to build a global, outward-looking Britain that is confident on the world stage. Our troops will continue to lead NATO’s Enhanced Forward presence in Estonia, and the RAF are leading the Southern Air Policing in Romania. We have doubled our UN peace keeping efforts, bringing urgent medical and engineering support to South Sudan. Our sailors will be preparing for the Queen Elizabeth carrier’s first entry into Portsmouth and from the summer we will be commanding half of NATO’s standing Naval force deployments. Our Air Force will increase their efforts in the campaign to defeat Daesh. We will continue implementing our plans to make our defence estate fit for the 21st century, giving our personnel a better place to live, work and train and continuing our work to transform the way we employ and support our Service personnel and their families, in order to become a more modern, inclusive and attractive employer. Our organisation continues to make great strides but we should appreciate the effect our work can have on our people, and remain ever grateful for the sacrifices made by all elements of the Defence community. 8 Annual Report and Accounts 2016-2017 Introduction from the Permanent Secretary and the Chief of the Defence Staff Over the last year we have continued to deliver against Defence’s top priorities – success on operations; remaining outward facing and internationally engaged; delivering the ambitious policies, plans and programmes set out in the Strategic Defence and Security Review 2015 (SDSR15) and ensuring that we keep Defence policy, our commitments, the forward programme and resources in balance. It has been a busy year operationally. In addition to sustaining Continuous At Sea Deterrence with our Vanguard Class Submarines, we are delivering Collective Security to the NATO Alliance and the UK in a number of leading roles at sea in the Mediterranean, on land with the commitment to Enhanced Forward Presence in Estonia, and in the Air leading Southern Air Policing in Romania. We are tackling the scourge of international terrorism as a significant member of the Global Counter Daesh Coalition; we are helping to train the Iraqi Security Forces and, at home, supporting the Security Services and police in countering terrorism. In addition, through the joint Defence and GCHQ National Offensive Cyber Programme we will deliver the tools and techniques required for the UK to establish a world-class offensive cyber capability. The updated International Defence Engagement Strategy was announced in February 2017 to outline the ends, ways and means by which UK Defence Engagement should be conducted. We have established new British Defence Staffs in Dubai, Singapore and Abuja, fulfilling our SDSR15 commitments. Wider UK Government-funded programmes in Afghanistan have provided assistance in education and anti- corruption – helping to ensure millions of children now attend school, 38% of whom are girls. We were delighted that the UK was chosen to be a global repair hub for F-35 Lightning aircraft; this will generate hundreds of millions of pounds of revenue for UK Defence industry and hundreds of jobs. Testing and commissioning of our new aircraft carrier HMS Queen Elizabeth continues and we achieved the major milestone of moving the crew on board in January 2017. To help us maintain our strategic edge we have launched the Defence Innovation Initiative, backed by an £800M Innovation Fund, and are contributing to wider skills development by delivering our 150,000th Apprenticeship within the last year. Our plans to modernise the way we employ and support our personnel continue to develop. The Whole Force – regulars, reserves, civilians and contractors is a reality every day. We have engaged with thousands of staff to help shape options for the Future Accommodation Model, which we will be developing further in the coming year. As part of planning for the New Joiner Offer we have been reviewing all aspects of the offer to help understand how we can better target it. In the Future Defence Civilian Programme we are challenging ourselves on which functions we still need to carry out internally, and who is best placed to deliver them. The action plan to support the Armed Forces Families’ Strategy was agreed in October 2016, meaning that the families of Service Personnel can access the right support when required. The Veterans’ Gateway has been established to manage the journey for veterans to get the help and support they need. In excess of £22M has been allocated through the Service Pupil Premium to help over 73,000 school children from Service families, and through the Forces Help to Buy scheme we have enabled over 10,000 personnel get on or stay on the property ladder. We are likely to face further challenges in the year ahead, but the work we are doing today will mean that in the future the brave men and women working for us are better able to do their jobs. 9 Our 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.
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