Statistical Bulletin Series 1 provides figures on the composition and scope of the Department's expenditure, information on the impact of defence spending on the wider economy, and compares the MOD's spending to that of other departments and other countries.
Statistical Bulletin 1.03 sets out Defence expenditure over time and by expenditure group comparing it to other areas of government. There are tables presenting expenditure on equipment and Research & Development (R&D), MOD commitment to conflict prevention, value of non-current assets, external income earned by MOD, expenditure on external assistance and MOD input indicators. The data are consistent with that published in the MOD Annual Report and Accounts, and is produced as part of the transparency and accountability of the MOD to Parliament and the public.
Key Points and Trends
- In 2012/13, Defence Spending (Resource DEL plus Capital DEL minus Depreciation and Impairments) totalled £34.3 billion.
- In 2012/13 Defence was estimated to be the fourth highest area of Government expenditure (Resource DEL plus Capital DEL plus AME) behind Work and Pensions, Health and Education. This continues the position of recent years.
- In 2012/13 the main area of Resource expenditure was personnel (£11.9 billion) and the main area of Capital expenditure was Single Use Military Equipment (£4.8 billion), which largely consists of major weapons platforms under construction.
- Estimated MOD Equipment Expenditure for 2012/13 was £13.9 billion. Around £6.3 billion of this spend was on Capital Expenditure whilst £5.6 billion was on Equipment Support. The remaining £2.0 billion was on Research & Development (R&D) as reported in the Annual Report and Accounts.
- In 2011/12, MOD net expenditure on R&D activity, identified as being Frascati compliant, totalled just over £1.3 billion. Net expenditure on Research was £19 million (4%) higher than in 2010/11, despite the removal of the Met Office from the Department, but net Development was down £406 million (35%). Nearly 90% of this was spent on R&D activity undertaken outside the department (extramurally).
- As at 31 March 2013, the total net value of MOD Non-Current Assets was £120.4 billion. The largest category of assets was Single Use Military Equipment (£35.7 billion).
- In 2012/13 MOD earned just under £1.5 billion external income which is broadly in line with previous years.