British Defence News
Financial Times August 2009
Edited by Andy Ross
Did Brown Bury Damning Report?
Gordon Brown was accused of suppressing a "damning" review of defence
procurement policy that concluded billions of pounds were being wasted. The
report was due to be published in July but was delayed. It finds that the
Ministry of Defence has just two-thirds of the funds it needs to meet
existing commitments to buy equipment.
Compensating Injured Soldiers
The regime for compensating wounded soldiers appeared in disarray as Downing
Street expressed sympathy with a senior government aide who described the
policy as "profoundly wrong". The Ministry of Defence is pressing ahead with
a legal case to reduce compensation to two wounded servicemen. A review is
under way.
Fewer Eurofighters
The four partner nations behind the Eurofighter Typhoon have signed a deal
for the third batch of the fighter jets, but the Ministry of Defence ruled
out plans to buy its final quota of aircraft. Officials meeting in Germany
placed orders worth €9 billion for 112 aircraft with the Eurofighter
consortium in return for commitments to cut the cost of supporting them.
Army Vehicle Procurement
The government is moving ahead with a £16 billion programme to acquire
thousands of multi-purpose armoured vehicles for the military. Soon the
Ministry of Defence will send a final invitation to contractors BAE Systems
and General Dynamics (UK) to bid for a chunk of the Future Rapid Effects
System project worth up to £2 billion. In total the MoD plans to buy about
1200 specialist vehicles comprising three families, including
reconnaissance, medium armour and manoeuvre support.
Helicopter Clarification
Gordon Brown ordered a Foreign Office minister to "clarify" claims that
British troops did not have enough helicopters in Afghanistan and insisted
that recent deaths on the front line were not due to a lack of air support.
Lord Malloch-Brown, the Foreign Office minister responsible for Afghanistan:
"We definitely don't have enough helicopters."
Big Navy Deal
The Ministry of Defence and BVT Surface Fleet, a joint venture between BAE
Systems and VT Group, have signed a landmark agreement worth at least £3.5
billion to sustain the British shipbuilding industry over the next 15 years.
Under the legally binding agreement, BVT has committed to find at least £350
million of cost savings over 15 years in return for a guaranteed minimum
workload. The MoD decision to delay the two aircraft carriers for two years
has led to a £1 billion increase in costs.
No Defence Budget Cuts?
Lord Mandelson added defence to the list of "essential frontline services"
that Labour wants to protect from spending cuts. Treasury plans assume cuts
in defence spending in both nominal and real terms next year. In 2010-11,
total defence spending is projected by the Treasury to fall by just over £2
billion to £45.5 billion.
New British Army Head
Gordon Brown is viewing the arrival of a new head of the British Army next
month as an opportunity to draw a line under an embarrassing period of
public infighting between the government and the military over the Afghan
war. General Sir Richard Dannatt, the chief of the general staff, publicly
stepped up demands for more resources for British troops fighting in
Helmand.
Nuclear Sub Plans
The government is to delay a spending decision affecting plans to replace
its independent nuclear deterrent. Officials said the government would not
place the initial design contract to build a new submarine platform for the
deterrent until after the 2010 general election. Plans for four new
submarines to replace the existing Vanguard fleet would have cost up to £3
billion as the first tranche of spending in a £20 billion project intended
to put new submarines in service by 2024.
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