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Chelsea Barracks: Sales

Volume 472: debated on Tuesday 4 March 2008

To ask the Secretary of State for Defence pursuant to the answer of 6 February 2008, Official Report, column 1151W, on Chelsea Barracks: sales, what portion of the proceeds from the sale of Chelsea Barracks will be applied to (a) the defence married quarters estate and (b) single living accommodation. (186821)

Question 184828 referred to the cash flows arising from the Chelsea disposal. Defence expenditure is based on the overall spending settlements agreed with the Treasury. Within 2007-08, some £250 million will be invested in single living accommodation (SLA) and as outlined in the recent comprehensive spending review (CSR) White Paper some £550 million of the Chelsea receipt is ring-fenced for investment in service accommodation over the next three years. A further £159 million will be programmed over future CSR periods. I have therefore set out in the following table both the cash flow profile arising from sale of Chelsea and the investment profile for SLA and service family accommodation (SFA) contained in the defence financial plans.

£ million

2007-08

2008-09

2009-10

2010-11

Next CSR period

Chelsea cash flow

383.6

191.8

191.8

191.8

SLA expenditure

250

500

1159 to be programmed

SFA expenditure

0

50

1

The balance of the investment is directed at SLA, as half of the worldwide stock is currently at the lowest acceptable condition. Under current plans, 30,000 new or improved SLA bed-spaces will be delivered by 2013. This Department plans to invest a total of £134 million on SFA in Great Britain over the next three years, of which £50 million is capital from the Chelsea receipt.