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Departmental Cost Effectiveness

Volume 472: debated on Wednesday 5 March 2008

To ask the Secretary of State for Defence what the savings target is for each top level budget holder in his Department in 2007-08. (190716)

Under the spending review 2004 efficiency programme, the MOD is required to achieve £2.83 billion of cumulative input and output efficiency savings by the end of 2007-08. We are on course to overachieve against this target.

These savings are delivered by departmental change programmes and by implementing the force capability changes set out in ‘Delivering Securities in a Changing World: Future Capabilities’, published in July 2004, rather than by targets on Top Level Budget (TLB) holders. Further details can be found in the MOD Efficiency Technical Note which is available online at:

http://www.mod.uk/NR/rdonlyres/3F55E01546B54E14B086C399208B9575/0/mod_etn_051205.pdf

As part of the 2007 Financial Planning Round, further efficiency savings targets for 2007-08 were agreed with individual TLB holders as follows:

TLB

Saving (£000)

Fleet

10,639

Land Forces

31,541

Air Command

12,765

Central TLB

4,272

Defence Estates

3,032

CJO

2,031

Total

64,280

Efficiency savings across the Department are reinvested to fund high priority areas of expenditure, such as support to operations and our personnel, including through sustained investment in accommodation.

To ask the Secretary of State for Defence what progress his Department has made in its zero-based budget review under the Comprehensive Spending Review. (191491)

The MOD completed its zero-based budget review as part of the comprehensive spending review 2007, the outcome of which was announced in July 2007.