Another £3.7 Billion for Britain's Defence
(Source: UK Ministry of Defence; issued July 12, 2004)
(EDITOR'S NOTE: Some British newspapers have been reporting, for several weeks, that MoD was preparing substantial manpower cuts because of a government plan to drastically reduce defense spending. This is manifestly not the case.)
Defence Secretary Geoff Hoon today welcomed the announcement of the longest period of sustained real terms growth in planned Defence spending since the early 1980s. He stressed that the extra money will be invested in modernising Defence for the challenges of the 21st Century.
The settlement announced by the Chancellor raises the Defence budget by £3.7 billion between 2004-05 and 2007-08 - a real terms increase of 1.4% a year.
Responding to the settlement, Defence Secretary Geoff Hoon said:
"I welcome this settlement, which demonstrates the Government's continued commitment to Defence. It is also a vote of confidence in the superb performance of our Armed Forces and those who support them, across the world and at home.
"The threat posed to the UK's interests by international terrorism and failing states presents us with very real and immediate challenges. As well as sustaining our investment in new capability, this settlement enables the continued modernisation of our Armed Forces against a backdrop of evolving threats to our security and advances in technology.
"My priority now is to drive forward the ambitious modernisation plans which this settlement makes possible. I described the vision in the White Paper I published last December. Next week I will announce what it will mean in practice."
BACKGROUND DETAILS/
** The 2003 Defence White Paper, "Delivering Security in a Changing World", builds on the 1998 Strategic Defence Review (SDR) and 2002 Strategic Defence Review: New Chapter, in setting out the strategy for the UK's Armed Forces. The White Paper sets out the policy context within which the future structure and capabilities of our Armed Forces will be determined:
http://www.mod.uk/dpa/the_defence_white_paper.htm ** In the three years to 2004, the Government has provided over £4 billion to meet the net additional costs of military operations in Iraq and Afghanistan and its international obligations.
** Spending Review 2002 represented the largest planned increase in defence spending for twenty years, providing an additional £3.5bn by 2005-06, representing 1.2% average annual real growth.
** Spending Review 2002 included a £578M Modernisation Fund specifically to modernise logistics and business information systems across defence. The Spending Review 2004 settlement increases its funding at an increased rate of £1 billion over three years, with an expanded scope which now includes rationalisation of the defence estate.
** The Ministry of Defence has committed to find over £2.8 billion of efficiency savings by 2007-08, in areas such as more efficient procurement and logistics, and reduced back office and support functions. The settlement includes a specific fund to aid modernisation in key areas of logistics, business information systems and estates rationalisation.
** This settlement supports the further modernisation of the Armed Forces, focused on increasing their flexibility, agility and operational effectiveness when acting independently or alongside our allies. The longstanding arrangements of central funding of the net additional costs of military operations and urgent operational requirements will remain in place.