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 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
- Hong Kong protests approach potential National Day flashpoint |
- British financial watchdog to investigate Tesco accounting scandal
- Eyeing 2015 vote, Cameron pledges 7 billion pounds in tax cuts
- Analysis - Financial market storm brewing as 2014 winds down
- Hong Kong's embattled leader believes protests could last weeks- source |