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Defence Equipment

Volume 486: debated on Monday 12 January 2009

To ask the Secretary of State for Defence pursuant to his Written Ministerial Statement of 11 December, Official Report, column 65WS, on defence equipment, whether the defence budget will be required to repay the full cost or half the cost of urgent operational requirement purchases over £635 million in financial year 2009-10. (245204)

We have agreed with HM Treasury an estimate for Reserve expenditure on other UORs in 2009-10 of £635 million. This is in addition to the funding that will be provided from the Reserve for the Protected Mobility package for 2009-10. I can confirm that any excess UOR spend over the estimate of £635 million will be repaid in full (100 per cent.) from the Defence budget in two years’ time (FY2011-12).