Britain's MoD aims to cut spending on military support contracts - FT
(Reuters) - Britain's Ministry of Defence (MoD) plans to cut 1.5 billion pounds ($2.47 billion) from the money it pays defence companies annually to help maintain and retool its military equipment, the Financial Times reported.
An MoD spokeswoman declined to confirm the figure, but said the MoD was looking to make savings across all of its contracts.
The paper said the cuts, which are equivalent to a fifth of the MoD's 7.5 billion pound annual spending on support contracts, would likely take several years to roll out. (link.reuters.com/gep56v)
The ministry would need to wait until many of its existing support contracts expired before it could renegotiate them, the FT added.
The Defence Equipment and Support unit, the MoD's procurement arm, spends about half its annual budget on servicing equipment, outsourcing the work to companies such as BAE Systems and Babcock International Group.
- Tweet this
- Share this
- Digg this
- Qatar will not host 2022 World Cup, says FIFA's Zwanziger
- U.S., backed by Arabs, launches first strikes on fighters in Syria |
- M&S frees Alan Stewart to take up Tesco CFO role early
- Philips to split off lighting business, form separate company
- Tesco cuts profit outlook again and suspends staff after accounting error |