[holding answer 21 January 2008]: The rounded £16,000 million annual budget figure for financial year 2006-07, as shown on the Defence Equipment and Support Organisation’s website, encompasses both equipment and non-equipment resource expenditure. This includes manpower, overhead costs and indirect non-cash resource costs such as cost of capital charges on assets and depreciation.
The figure of £12,130 million for financial year 2006-07, as detailed in my answer of 13 December 2007, Official Report, column 774W, was for spend on equipment programmes only, including expenditure on all equipment additions, equipment support (including Stock Consumption and Post Design Services), PFI Service Charges and IT and Communications.