Procurement Expenditure (Hansard, 1 February 2002)

§ Angus Robertson
To ask the Secretary of State for Defence what the total expenditure is for procurement for each of the services; and how much of the procurement budget for each is spent in Scotland. [32461]

§ Dr. Moonie
Figures for the amount the Ministry of Defence spends on defence equipment and non-equipment for the years 1998–99 to 2001–02 are published by the Defence Analytical Services Agency in UK Defence Statistics (available in the Library of the House). These data, which are given in the table, are broadly split by type ie whether it is air, land, sea or 'other' equipment for the years where this information is available. The 'other' category refers to equipment not specific to a particular environment. This division (air, land, sea and other) does not necessarily match the particular end destination of the equipment (ie RAF, Army and Navy). For example, not aerospace equipment is used by the RAF.
During 1999–2000, we estimate that the MOD spent some £600 million on defence equipment directly with contractors based in Scotland. A breakdown of this into air, land, sea and 'other' is not available.

1.3 principal headings of the Defence budget^1,2,3

VAT-inclusive at current prices (£ million)

1998–99 Outturn 1999–2000 22,549 Estimate 2000–01

Total expenditure/budget 22,475 22,549 23,538r

Expenditure on personnel⁴ 8,553 8,509 8,754r

of the armed forces 6,286 6,257 6,500r

of the retired armed forces⁴ * * *

of civilian staff 2,267 2,252 2,255r

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1.3 principal headings of the Defence budget ^1,2,3

VAT-inclusive at current prices (£ million)

1998£99 Outturn 1999£2000 Estimate 2000£01

Expenditure on equipment 9,889 9,715r 10,008r

Sea 2,319 — —

Land 1,665 — —

Air 4,572 — —

Other 1,333 — —

Other expenditure 4,000 4,325r 4,775r

Works, buildings and land 1,759 1,799 1,918

Miscellaneous stores and services 2,274 2,526r 2,857r

Adjusted defence budget⁶ 22,475 22,649 23,538r

at 2000£01 prices^6,7 23,419 22,973 23,538r

Expenditure on personnel⁴ ⁸38.1 ⁸37.7 ⁸37.2r

of the armed forces ⁸28 ⁸27.7 ⁸27.6r

of the retired armed forces' ⁸* ⁸* ⁸*

of civilian staff ⁸10.1 ⁸10 ⁸9.6r

Expenditure on equipment ⁸44.0 ⁸43.1r ⁸42.5r

Sea ⁸10.3 ⁸— ⁸—

Land ⁸7.4 ⁸— ⁸—

Air ⁸20.3 ⁸— ⁸—

Other ⁸5.9 ⁸— ⁸—

Other expenditure ⁸17.9 ⁸19.2r ⁸20.3r

Works, buildings and land ⁸7.8 ⁸8.0r ⁸8.2r

Miscellaneous stores and services ⁸10.1 ⁸11.2r ⁸12.1r

¹Over the last 20 years the coverage of the defence budget has changed in that:

from 1983–84, it has included accommodation (maintenance and rental) and home publicity;

from 1990–91, it has included rates on the Defence portion of the UK Civil Estate included in the defence budget;

from 1991–92, it has included services provided by the Treasury Solicitor and the Inland Revenue;

from 1993–94, it has included provision for charges for pension cover for currently serving service and civilian personnel but excluded pension payments to retired service personnel; and

from 1994–95, it has excluded provision for the Security and Intelligence services.

²All figures in table 1.1 and estimates in table 1.3 were derived from the Supply Estimates for each year. Estimates are 'latest agreed' at time of going to press.

³Figures for 1999–2000 onwards, do not include the air, land sea split for equipment expenditure due to a change in accounting practice.

⁴From 1990–91 to 1994–95, includes financial assistance to pre-1973 war windows.

⁵From 1995–96, military aid to overseas countries has been excluded from the NATO definitions.

⁶The 'Adjusted Defence Budget' takes account of major definitional changes in defence spending and of major transfers of responsibility to and from Government Departments. It therefore provides a more consistent and reliable guide to trends. This is the basis upon which defence spending figures are present in the MOD Departmental Report, the Statement on the Defence Estimates and certain Treasury publications. Totals for 1999–2000 represent final outturn and for 2000–01 estimated outturn. Figures in this line also exclude the element of receipts from the sale of the Married Quarters Estate that were appropriated onto Defence Votes.

⁷ These constant price totals have been calculated using the GDP deflator.

⁸ Percentage of total expenditure/budget.

Notes:
1. Defence votes differed from defence budgets:
by excluding the funding of major works on the Civilian Estate until 1988–89
by Appropriations-in-Aid and expenditure not classified as public expenditure; and
from 1993–94 charges for pensions cover for serving service personnel are Appropriations-in-Aid of Defence Vote 4, (Defence Vote 2 from 1999–2000) and reflected in the 'other adjustments' line of table 1.1.
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2. Expenditure are based on current market prices; the Defence figure in 1990–91 is net of contributions (about £2.1 billion) from abroad in respect of UK defence activities in the Gulf war.
3. Figures for 1996£97 and 1997£98 include the element of receipts (£304 million and £700 million respectively) from the sale of the Married Quarters Estate that were appropriated on to defence votes.
Source:
MOD Corporate Financial Controller(Corporate Financial Management).

§ Angus Robertson
To ask the Secretary of State for Defence how much was spent in defence procurement in the last year for which figures are available in(a) the UK and (b) Scotland. [32454]

§ Dr. Moonie
The information requested is contained in the document "Defence Statistics 2001", a copy of which is available in the Library of the House. Table 1.9 contains data on defence expenditure on equipment by region and nation of the UK.

1.3 principal headings of the Defence budget^1,2,3
VAT-inclusive at current prices (£ million)
	1998–99	Outturn 1999–2000 22,549	Estimate 2000–01
Total expenditure/budget	22,475	22,549	23,538r
Expenditure on personnel⁴	8,553	8,509	8,754r
of the armed forces	6,286	6,257	6,500r
of the retired armed forces⁴	*	*	*
of civilian staff	2,267	2,252	2,255r

1.3 principal headings of the Defence budget ^1,2,3
VAT-inclusive at current prices (£ million)
	1998£99	Outturn 1999£2000	Estimate 2000£01
Expenditure on equipment	9,889	9,715r	10,008r
Sea	2,319	—	—
Land	1,665	—	—
Air	4,572	—	—
Other	1,333	—	—
Other expenditure	4,000	4,325r	4,775r
Works, buildings and land	1,759	1,799	1,918
Miscellaneous stores and services	2,274	2,526r	2,857r
Adjusted defence budget⁶	22,475	22,649	23,538r
at 2000£01 prices^6,7	23,419	22,973	23,538r
Expenditure on personnel⁴	⁸38.1	⁸37.7	⁸37.2r
of the armed forces	⁸28	⁸27.7	⁸27.6r
of the retired armed forces'	⁸*	⁸*	⁸*
of civilian staff	⁸10.1	⁸10	⁸9.6r
Expenditure on equipment	⁸44.0	⁸43.1r	⁸42.5r
Sea	⁸10.3	⁸—	⁸—
Land	⁸7.4	⁸—	⁸—
Air	⁸20.3	⁸—	⁸—
Other	⁸5.9	⁸—	⁸—
Other expenditure	⁸17.9	⁸19.2r	⁸20.3r
Works, buildings and land	⁸7.8	⁸8.0r	⁸8.2r
Miscellaneous stores and services	⁸10.1	⁸11.2r	⁸12.1r
¹Over the last 20 years the coverage of the defence budget has changed in that:
from 1983–84, it has included accommodation (maintenance and rental) and home publicity;
from 1990–91, it has included rates on the Defence portion of the UK Civil Estate included in the defence budget;
from 1991–92, it has included services provided by the Treasury Solicitor and the Inland Revenue;
from 1993–94, it has included provision for charges for pension cover for currently serving service and civilian personnel but excluded pension payments to retired service personnel; and
from 1994–95, it has excluded provision for the Security and Intelligence services.
²All figures in table 1.1 and estimates in table 1.3 were derived from the Supply Estimates for each year. Estimates are 'latest agreed' at time of going to press.
³Figures for 1999–2000 onwards, do not include the air, land sea split for equipment expenditure due to a change in accounting practice.
⁴From 1990–91 to 1994–95, includes financial assistance to pre-1973 war windows.
⁵From 1995–96, military aid to overseas countries has been excluded from the NATO definitions.
⁶The 'Adjusted Defence Budget' takes account of major definitional changes in defence spending and of major transfers of responsibility to and from Government Departments. It therefore provides a more consistent and reliable guide to trends. This is the basis upon which defence spending figures are present in the MOD Departmental Report, the Statement on the Defence Estimates and certain Treasury publications. Totals for 1999–2000 represent final outturn and for 2000–01 estimated outturn. Figures in this line also exclude the element of receipts from the sale of the Married Quarters Estate that were appropriated onto Defence Votes.
⁷ These constant price totals have been calculated using the GDP deflator.
⁸ Percentage of total expenditure/budget.