Chapter 1 - Finance
                   
Table 1.9a Estimated Defence Expenditure Outturn in the UK: Breakdown by Industry Group
This table, which has been prepared from MOD administrative systems introduced under Resource Accounting and Budgeting (RAB), estimates the amount of money the MOD spends directly with UK industry broken down by industrial group. The RAB breakdowns do not permit the analysis that was undertaken previously. The break in series has, however, permitted the table to show all the sections of the economy that are represented in the Standard Industrial Classification (SIC). Figures exclude 'internal' MOD expenditure such as pay and allowances. Industrial groupings are based on the SIC 1992 guidelines maintained by the Office for National Statistics. The figures have been rounded to the nearest £10M. Differences between the totals and sums of the components are caused by this rounding.

VAT exclusive at Current Prices (£ million)
SIC(92)/SIC(03) Section     2002/03 12003/04 2004/05 2005/06 2006/07
Total
      13 810 || 14 640 14 490 16 030 16 490
                   
A, B, C     Agriculture, Fishing and Mining - || - - - -
                   
D
 
  Manufacturing, excluding those industries itemised below 1 470 || 1 470 1 350 1 740 1 640
 
 
               
 
29.6
  Weapons & Ammunition 790 || 740 820 1 030 1 080
 
30
  Data Processing Equipment 170 || 180 110 70 50
 
31
  Other Electrical Engineering 170 || 180 150 180 200
 
32
  Electronics 640 || 600 910 1 160 1 000
 
33
  Precision Instruments 810 || 760 690 750 600
 
34, 35.2, 35.4, 35.5
  Motor Vehicles & Parts 130 || 170 220 330 300
 
35.1
  Shipbuilding & Repairing 1 070 || 1 160 1 060 1 100 1 150
 
35.3
  Aircraft & Spacecraft 2 380 || 2 050 1 810 1 730 1 960
                   
E
    Electricity, Gas & Water 190 || 210 230 260 280
                 
F
    Construction 990 || 1 190 1 230 1 310 1 380
                 
G
    Wholesale, Retail & Repair of Motor Vehicles 170 || 180 160 180 230
                 
H, I2
55
  Hotels & Restaurants 200 || 210 200 250 230
 
60.1
  Transport via railways 80 || 70 60 70 70
 
60.2,60.3
  Other Land Transport (incl. via pipelines) 70 || 70 20 30 20
 
61,62,63
  Water, Air and Auxiliary/freight supply transportation 420 || 490 380 370 450
 
64
  Post & Courier Services 10 || 10 10 10 10
                   
 
64.2
  Telecommunications 320 || 530 310 300 330
                   
J, K, L, M,
N, O, P
    Financial Services, Business Activities, Education, Health, & Other Service Activities excluding those industries itemised below 3,4 2 150 || 2 590 2 750 2 800 2 880
                   
  70, 71   Real Estate & Renting 950 || 1 000 1 230 1 460 1 500
  72   Computer Services 640 || 800 790 930 1 110
Source: DASA (Economic Statistics)
1. The break in series between 2002/03 and 2003/04 reflects the fact that for 2002/03 the Defence Bills Agency data was still based on Internal Account     Codes (used under the old cash system), and was migrated to Resource Accounting Codes one year later than the accounting systems, on 1 April 2003.
2. The "Hotels, Restaurants and Transportation" category previously published in UKDS has been expanded this year to include a more detailed breakdown of     the H and I divisions of the Standard Industrial Classification. This allows for a greater disaggregation of expenditure on transportation related activities     such as auxillary and freight supply transport.
3. Includes MOD payments to AWE Management Ltd, who manage the Atomic Weapons Establishment on behalf of the MOD under a
    Government-owned/contractor-operated arrangement.
4. The quality of data available for the service industries is insufficient to identify these SICs separately.