Good news can conceal a multitude of elephants - Thoughts on the 2013 Spending Review Announcement
Well the weeks of speculation are over, and the results of the Spending Review (SR) were finally announced in Parliament today by the Chancellor George Osborne. As expected all departments bar those previously confirmed as having secure funding received cuts. The real question on most people’s minds though were ‘how bad is it going to be’? In simple terms the MOD appears to have done remarkably well out of this settlement compared to previous public expectations of doom and gloom. It is no small feat to emerge from a bruising spending round with a relatively small cut to the overall budget, and with a commitment to keeping capital expenditure on a flat (i.e. real terms small decline) basis. That this has happened is perhaps testimony to the remarkable efforts by the MOD to bring its budgets under control in recent years – the realism measures pushed through, the efforts to close the black hole and the persuasive case made that major cuts to the budget would force structural...