Money, Money, Money - the MOD budget announcement

The Prime Minister has confirmed that the Ministry of Defence will receive a very substantial budget uplift over the next four years to fund national defence and security objectives. This will see some £16bn extra funding, beyond previously agreed spending going into Defence in order to set the conditions to transform the force. Good news – surely? On paper this is an extremely welcome development, and one that will be warmly welcomed across the MOD and wider defence industry. It provides additional funding, and helps provide certainty across several years – making it easier for industry to plan and price projects, knowing there is much greater certainty than there has been for years. The first point to consider is ‘where is the money coming from’? Its unclear yet where the money will come from to support this extra spending. There seem to be several options, which include is it genuinely entirely new money, added without preconditions to the budget to help MOD out of a difficult...