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Defence: Finance

Ministry of Defence written question – answered on 14th February 2018.

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Photo of Lord Moonie Lord Moonie Labour

To ask Her Majesty's Government what inflation rates they are assuming for each of the next five years in planning for defence budgets to rise by inflation plus 0.5 per cent.

Photo of Earl Howe Earl Howe The Minister of State, Ministry of Defence, Deputy Leader of the House of Lords

Economic forecasts, including for inflation, are provided by the independent Office for Budgetary Responsibility (http://obr.uk/report/economic-and-fiscal-outlook). The Ministry of Defence's (MOD) budget was set at Spending Review 2015 and runs to 2020-21. This meets our commitment to increase MOD's core budget by 0.5% above inflation each year.

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