UK announces increase in defence budget

UK Defence Secretary Des Browne has welcomed the announcement by the Government of a £7.7 billion increase in the defence budget over the next three years.

The 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 £34 billion in 2008-09, £35.3 billion in 2009-10 and £36.9 billion in 2010-11.

This is an additional £7.7 billion for defence by 2011, equating to 1.5% average annual real growth against the 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 £6.6 billion in supporting the front line since 2001.

Defence Secretary Des Browne:

This CSR means an additional £7.7 billion 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.

Coupled to the settlement is the UK Ministry of Defence's (UK MOD’s) commitment to reduce overheads to put more into the front line. This will be through a 5% year-on-year saving in the MOD’s administrative overhead over the next three years and a 25% reduction in costs to the MOD’s Head Office. These are additional to the £2.8 billion efficiencies that will have been delivered over the Spending Review 2004 period.

Source: UK MOD DCB

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