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Defence: Procurement

Defence written question – answered on 10th July 2013.

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Photo of Jim Murphy Jim Murphy Shadow Secretary of State for Defence

To ask the Secretary of State for Defence

(1) which financial year will act as the baseline from which the annual real terms one per cent increase in defence equipment spending will be calculated;

(2) whether equipment support will be subject to an annual real terms one per cent increase after 2015.

Photo of Philip Dunne Philip Dunne The Parliamentary Under-Secretary of State for Defence

As the 2013 spending round set out, the baseline year for the annual one per cent increase in equipment spending, which includes both procurement and support spending, is financial year 2015-16, with the increase continuing each year thereafter. This is because the baseline year needs to take account of the new efficiencies identified in the spending round 2013, which have been factored in to our plans before calculating the 1% increase.

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