UK Watchdog Flags Billions in Unaccounted Defense Expenditures

The UK’s spending watchdog has raised serious concerns about the Ministry of Defense (MoD) finances after finding billions of pounds of unexplained spending linked to the country’s nuclear weapons programs. The National Audit Office said the MoD’s 2024–25 financial statements failed to meet normal standards of accuracy and transparency. Auditors said the government had “not provided accounting records” for major projects run by the Atomic Weapons Establishment, which develops the UK’s nuclear warheads. These projects made up £6.13 billion (nearly $8 billion) of the MoD’s assets, including £1.5 billion in “legacy projects” for which the ministry could not provide supporting evidence. Auditors also found a £2.56 billion shortfall in the MoD’s 2023–24 accounts, linked to legal liabilities and compensation costs. These included payments for personal injury claims and for Afghan staff relocated under the Afghan Relocations and Assistance Policy and Afghanistan Response Route. The watchdog said the MoD failed to disclose a “significant data breach” related to the Afghan programs until after a court injunction was lifted in July, preventing auditors from properly reviewing the spending. The NAO concluded: "The MoD did not have appropriate authorization from Parliament for this expenditure, which has resulted in a qualified regularity opinion."