Defence Industrial Strategy 2 deferred.
The MoD is struggling to fulfil its commitment
to DIS 2 because a key element of the road map will not be
finalised until the second quarter of 2008.
This time slippage should allow the MoD to
resolve funding issues in its latest equipment planning round.
A £1 billion annual shortfall looms in the ministry’s
long-term equipment plan. The UK’s annual procurement and
support budget is currently just under £13 billion per year.
To accommodate eventual decisions, that could
see reductions or even cancellations the ministry has delayed
publishing DIS 2. A defence White Paper is also a possibility
for 2008.
The planning round under discussion covers the
three years from 2008 – 2011. Top level funding for this
period was set in the government’s Comprehensive Spending Review
and reflected a 1.5% increase in real terms. In 2008-9, the
ministry will receive £34 billion, with this figure rising to £36.9
billion in 2010-11.
Unite is committed to seeing this level of
investment remain or increase. Unite is concerned that the
ministry id seriously under-investing in future capability.
Des Browne, the secretary of state for defence, told parliament
this year that there ‘is a legacy of underinvestment in the
sector’.
