The MOD does not make provision for the net additional cost of operations in Iraq and Afghanistan, which is recovered from the Treasury Reserve. Between 2001-02 and 2006-07 the costs for these operations were:
£ million 2001-02 2002-03 2003-44 2004-05 2005-06 2006-07 Total Operations in Iraq — 629 1,051 747 798 787 4,012 Expenditure on capital equipment — 218 260 163 160 169 970 Total — 847 1,311 910 958 956 4,982
£ million 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Total Operations in Afghanistan (near cash) 187 236 36 58 148 560 1,225 Expenditure on capital equipment 34 75 10 9 51 178 357 Total 221 311 46 67 199 738 1,582
We have requested a total of an additional £3,374 million from the Treasury Reserve in the Winter and Spring Supplementary Estimates to cover the net additional costs of operations in Iraq and Afghanistan in 2007-08.
Audited outturn figures will be published in the MOD's Annual Report and Accounts towards the end of July.
My right hon. Friend the Chancellor announced in his Budget speech that the estimated cost of operations in Iraq and Afghanistan would be at least £2 billion in 2008-09.