§ Mr. GeorgeTo ask the Secretary of State for Defence if he will list for each year since 1979 the adjustments made to the cash plans for defence spending in future years to take into account revised forecasts of the level of128W inflation indicating, in each case, whether the increase or decrease in the cash plan matched exactly the revised inflation forecast. [9468]
§ Mr. SoamesLike all Departments, the Ministry of Defence determines its spending plans in consultation with the Treasury during the public expenditure survey. Adjustments to the previous years' plans are made for a variety of reasons, of which forecast inflation is only one. Therefore it is not usually possible to identify a specific figure from any given set of spending plans that represents an adjustment solely attributable to changes in forecast levels of inflation. The spending plans announced in November 1996, however, maintained the real value of the money planned for spending in 1997–98 because of the Government's commitment to a period of stability for the armed forces. Lower inflation forecasts enabled this to be achieved at a lower cost than estimated at the time of the 1995 public expenditure survey. Money has also been added to the defence budget to cover special housing costs.