The current estimated expenditure on the procurement of the programmes listed for the next 12 months up to the end of financial year 2009-10 is provided in the following table:
Programme Direct Resource DEL and Capital DEL Indirect Resource DEL Total Aircraft Carriers 419 29 448 Joint Strike Fighter 142 50 192 Trident Replacement Programme 390 1 391 Type 45 Destroyers 443 114 557 Future Rapid Effect System 45 0 45 Astute Class Submarine 561 80 641 Typhoons 903 92 995 Note: Indirect Resource DEL includes a notional Cost of Capital Charge and Depreciation.
The total estimated expenditure includes equipment procurement costs only and excludes any related equipment support or overhead expenditure.
The Defence budget is spent as efficiently as possible to deliver value for money in producing required military capability, but is not allocated on a regional basis or by individual service. For example, military equipment is provided for the armed forces by the Defence Equipment and Support (DE&S) organisation, which receives the top level requirements under the guidance of the Deputy Chief of Defence Staff (Capability). These are determined on a capability basis.
Estimates for direct MOD expenditure on equipment and non-equipment, and civilian and service personnel in Scotland are provided in the following table. Expenditure has been expressed as a percentage of the MOD’s total worldwide actual cash expenditure. It is not possible to give a final figure for expenditure for Scotland as our contractors may place subcontracts with organisations outside Scotland. Moreover, companies in Scotland may receive defence subcontracts from firms elsewhere in the UK.
£ million at current prices (VAT exclusive) Total 1,620 Of which: Service personnel costs 590 Civilian personnel cost 190 Equipment expenditure 520 Non-equipment expenditure 320 Total as percentage of net cash requirement 5.2 Total as percentage of near cash 5.3 Note: Figures rounded to nearest £10 million
The MOD presents estimates of annual procurement of goods and service in the UK broken out by industry sector and estimates of aggregate MOD equipment expenditure annually in “The UK Defence Statistics”, which can be found at the following link:
http://www.dasa.mod.uk/UKDS2008/ukds.html
The most recent data cover 2002-03 to 2006-07 and the data for 2008-09 will be published on 27 September 2009. Given that there is no regional consideration to the defence budget, we will no longer produce a regional breakdown of direct defence employment and associated expenditure after then.
There is a strong manufacturing base in Scotland as a result of sustained investment by the UK Government. The Scottish Affairs Select Committee report into Employment and Skills for the Defence Industry in Scotland, published in June 2008, said that “the defence industry is vital to Scotland”. Defence and aerospace industries generate nearly £2.31 billion in sales and together with the MOD support almost 50,000 jobs and a record number of apprentices.