Since 1 April 2008 funds for major contracts in Iraq have been managed from London as this is more cost-effective. The funds managed at post are for local running costs.
The total allocations for London and posts in Iraq Directorate for financial year (FY) 2007-08 were £39.2 million. In FY 2008-09 total allocations reduced to £36.1 million. The decrease in allocation was because of the renegotiation of major contracts, which led to lower costs while maintaining appropriate levels of security for our staff.
Costs incurred at Basra include those for security, transport, medical, catering and other life support costs.
The value of the contracts for security at Basra in 2008-09 was £4.2 million.