HL Deb 11 October 2004 vol 665 cc35-6WA
Lord Marlesford

asked Her Majesty's Government:

What has been the total cost to public funds of military operations in Iraq since January 2004. [HL4267]

Lord McIntosh of Haringey

The Chancellor set aside £3 billion in Budget 2003 as a Special Reserve to cover the cost of operations in Iraq. £1 billion was drawn down by the Ministry of Defence in the Spring Supplementary Estimate for 2002–03.

The remaining £2 billion of this Special Reserve was carried forward to 2003–04. The Ministry of Defence drew down £1,539 million in the 2003–04 Winter and Spring Supplementary Estimates.

In the PBR 2003 the Chancellor announced a further £500 million for the Special Reserve in the financial year 2003–04 and a further £300 million for 2004–05 as a prudent allowance to cover Iraq our continuing International commitment to the war on terrorism.