Skip to main content

Iraq and Afghanistan: Costs of Conflicts

Volume 689: debated on Monday 5 February 2007

asked Her Majesty's Government:

What additional costs they have incurred through fighting wars in Afghanistan and Iraq in each year since those conflicts began; and whether those costs have been fully met by HM Treasury. [HL1711]

The Ministry of Defence identifies the costs of operations in terms of the net additional costs it has incurred. The costs that the department would have incurred regardless of the operation taking place, such as wages and salaries, are not included. Savings on activities that have not occurred because of the operation—training exercises, for example—are taken into account in arriving at the net figures. All of these costs are met, by convention, from the Treasury's reserves.

The annual audited figures for the cost of operations in Iraq for the years 2002-03 to 2005-06 were:

2002-03

Operations in Iraq

£629 million

Expenditure on capital equipment

£218 million

Total

£874 million

2003-04

Operations in Iraq

£1,051 million

Expenditure on capital equipment

£260 million

Total

£1,311 million

2004-05

Operations in Iraq

£747 million

Expenditure on capital equipment

£163 million

Total

£910 million

2005-06

Operations in Iraq

£798 million

Expenditure on Capital, equipment

£160 million

Total

£958 million

This gives a grand total of £4,026 million.

The current estimated cost of operations in Iraq for 2006-07 is in the region of £860 million. This was published in the winter supplementary estimates on 21 November.

The annual audited figures for the costs of operations in Afghanistan for the years 2001-02 to 2005-06 were:

2001-02

Operations in Afghanistan.

£187 million

Expenditure on capital equipment.

£34 million

Total

£221 million

2002-03

Operations in Afghanistan.

£236 million

Expenditure on capital equipment.

£75 million

Total

£311 million

2003-04

Operations in Afghanistan.

£36 million

Expenditure on capital equipment.

£10 million

Total

£46 million

2004-05

Operations in Afghanistan.

£58 million

Expenditure on capital equipment.

£9 million

Total

£67 million

2005-06

Operations in Afghanistan.

£148 million

Expenditure on capital equipment.

£51 million

Total

£199 million

This gives a grand total of £844 million.

The cost of operations in Afghanistan for 2006-07 is estimated to be in the region of £540 million. This was published in the winter supplementary estimates on 21 November.