§ 25. Mr. SavidgeTo ask the Secretary of State for Defence if he will make a statement on changes to his Department's spending plans as a result of the comprehensive spending review.[138598]
§ Mr. SpellarAs a result of the Spending Review settlement announced earlier this year the Defence Budget will increase in real terms by 1 per cent. between 2000–01 and 2003–04. This substantial funding increase will, over the period, provide £1,250 million of new money for defence, after allowing for inflation. The settlement builds on the Strategic Defence Review and sends an important signal about the Government's intention to sustain the capabilities of the armed forces. We are now looking at the priorities for further expenditure, particularly housing and accommodation, as part of our annual planning process, which will culminate early next year.