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Defence: Finance

Volume 470: debated on Monday 7 January 2008

To ask the Secretary of State for Defence (1) what recent discussions he has had with HM Treasury on payments for urgent operational requirements; (174493)

(2) whether urgent operational requirements are paid for from the Treasury Reserve;

(3) pursuant to his statement of 12 November 2007 that the defence budget will receive an additional £200 million in 2010-11, Official Report, column 500, what the revised (a) near cash resource departmental expenditure limit (DEL), (b) non-cash resource DEL and (c) capital DEL is.

The first £100 million of the additional £200 million in the defence budget for 2010-11 was included in the MOD’s capital departmental expenditure limits (DEL) announced in the comprehensive spending review. HM Treasury has agreed that a further £100 million will be added to the defence budget in 2010-11, which will bring the capital DEL funding to £8,971 million in 2010-11. There will be no change to the near cash or the non-cash resource DEL.

Defence Ministers have frequent discussions with colleagues from HM Treasury on a range of issues.

Urgent operational requirements are, and will continue to be, paid up front in full from the Treasury Reserve. We have agreed a new overall funding arrangement with HM Treasury for the funding of UORs for the comprehensive spending review period as I set out in my statement to the House on 12 November 2007, Official Report, column 500. This arrangement is designed to be cost neutral to defence.