Several news articles claim that the cost of the UK’s military mission in Libya could end up being £1.75bn, seven times what the Government predicted.
The MOD calculates the cost of operations on the basis of ‘net additional costs’. These are the extra costs of deploying assets and personnel over and above the usual ongoing commitments of the MOD which would be paid irrespective of their deployment.
Our current estimate remains that the net additional cost of Operation ELLAMY is in the region of £110m from the start of the operations in mid-March to mid-September, with replenishing munitions expended over this period costing up to £130m.
The £110m includes the direct costs incurred on operations, such as personnel allowances, catering and accommodation; the movement of equipment to support the operation; and costs associated with elevated levels of military activity, such as fuel. The Italian base at Gioia del Colle is provided to the UK by NATO, with UK costs limited to accommodation and meals.
This figure also includes the cost of road transport when we’ve had reason to use commercial carriers. The estimated total cost of all commercial transportation (including air) is £3.5m.
All of these costs represent the net additional cost of operations – that is, they are above and beyond the level of activity that MOD is funded for. These are claimed from the Treasury’s Reserve. These figures will be updated in light of the recent 90-day extension of the NATO mandate.
