My right honourable friend the Secretary of State for Defence (Des Browne) has made the following Written Ministerial Statement.

The Government have accepted the findings of the Review Board for Government Contracts as detailed in their report of the 2007 general review of the profit formula for non-competitive government contracts. The board's recommendations will be implemented with effect from 1 February 2008, in accordance with arrangements agreed between the Government and industry, recorded in an addendum to the published report. I will be placing a copy of the report in the Libraries of both Houses.