Britain's MoD aims to cut spending on military support contracts - FT

Sun Feb 2, 2014 9:00pm GMT

A British soldier works on a vehicle which will be re-deployed to the UK at Camp Bastion, outside Lashkar Gah, in Helmand Province, Afghanistan December 20, 2012. REUTERS/Stefan Wermuth

A British soldier works on a vehicle which will be re-deployed to the UK at Camp Bastion, outside Lashkar Gah, in Helmand Province, Afghanistan December 20, 2012.

Credit: Reuters/Stefan Wermuth

Related Topics

Quotes

   

(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.

(Reporting by Richa Naidu in Bangalore; Editing by Robin Pomeroy)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (2)
Raymond.Vermont wrote:
Well when you have continually participated within perpetual U.S. lead wars of Dubya-osity for the best part of a decade and a half, is it any wonder that the costs have been ultimately unsustainable?!

Feb 02, 2014 9:30pm GMT  --  Report as abuse
laodizea wrote:
The UK hopes on the USA and gives up its own opportunities. The future is integration with USA that practically all want .But I do not want In Britain there are a lot of American bases The fact is that people take good and clever idea and make with it what they what under cover of the name of Britain.

Feb 02, 2014 9:34pm GMT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.