UK details GBP160 billion defence equipment plan

The UK is to spend GBP60 billion procuring new military equipment over the next 10 years, the UK Ministry of Defence (MoD) announced on 31 January.

The revelation marks the first time that the MoD has set out a fully funded defence equipment plan, scrutinised by the UK National Audit Office (NAO), the MoD claimed. The equipment plan sets out a topline figure of about GBP159 billion (USD251 billion) to be spend on equipment overall, which is a GBP10 billion increase on the previous equipment budget figure of GBP150 billion released in March 2012.

As well as the GBP60 billion allocated to new procurement, over the next 10 years the MoD plans to spend GBP68 billion on supporting equipment in service with the UK armed forces and a further GBP18 billion on supporting new equipment planned to enter service during this period. The MoD also expects to retain GBP8.4 billion of unallocated funding 'headroom' and a GBP4.8 billion contingency for unexpected programme cost growth.

UK Defence Secretary Philip Hammond said: "For the first time in a generation the armed forces will have a sustainable equipment plan. Today's NAO report confirms that we were right to take the difficult decisions to cut unaffordable expenditure and balance the books."