UK Ministry of Defence,
Defence Secretary Des Browne has welcomed the announcement by the Government today, Wednesday 25 July 2007, which will see a £7.7bn increase in the defence budget over the next three years.
Today's announcement also paves the way for the purchase of two new aircraft carriers, a decision which will offer unprecedented capabilities for the UK's Armed Forces.
The settlement of the Comprehensive Spending Review (CSR) for defence breaks down into an annual budget of £34bn in 2008/9, £35.3bn in 2009/10 and £36.9bn in 2010/11.
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Computer generated images give an idea of the size of the planned new aircraft carriers
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This is an additional £7.7bn for Defence by 2011, equating to 1.5 per cent average annual real growth against our CSR baseline, which excludes the cost of operations and the time-limited Defence Modernisation Fund. In addition, The Treasury will continue to fund the additional cost of operations over and above the Defence Budget, having already invested some £6.6bn in supporting the front line since 2001.
Defence Secretary Des Browne said:
“This CSR means an additional £7.7bn for Defence by 2011 – the longest period of sustained real growth in planned defence spending since the 1980s. It is evidence of the Government's commitment to defence and to the men and women who serve with the utmost bravery in our Armed Forces.
“It also means that we can confirm that we will now place orders for two 65,000 tonne aircraft carriers – the largest ships ever sailed by the Royal Navy. The carriers represent a step change in our capability, enabling us to deliver increased strategic effect and influence around the world at a time and place of our choosing.”
The key outcomes for defence:
– £1bn over the CSR years to maintain a Strategic Deterrent, which will not be at the expense of current operations;
– MOD can proceed with two new aircraft carriers, which will be the largest ships ever sailed by the Royal Navy and a key part of modern expeditionary capability;
– an investment of £550m over the CSR years in Service accommodation, drawing on income from the anticipated sale of Chelsea Barracks. This confirms our plans to spend £5bn over the next ten years on upgrading and maintaining Service families and single living accommodation.
Coupled to the settlement is MOD's commitment to reduce overheads to put more into the front line. This will be through a five per cent year-on-year saving in MOD's administrative overhead over the next three years and a 25 per cent reduction in costs to the MOD's Head Office. These are in addition to the £2.8bn efficiencies that will have been delivered over the Spending Review 2004 period.
