HC Deb 19 December 1983 vol 51 c17W
Mr. Watson

asked the Chancellor of the Exchequer why purchases of major items of military equipment by his Department are regarded as revenue rather than capital expenditure.

Mr. Peter Rees

The classification of military equipment purchased by the Ministry of Defence follows that adopted in the national accounts. The accounts treat nearly all defence expenditure as current expenditure, following the conventions of international bodies such as UN, IMF, OECD and EC.