Chapter 1 - Finance
                         
Table 1.3 Principal Headings of Defence Expenditure Outturn (Resource basis)
This table provides a breakdown of defence outturn in terms of resources consumed. This is distributed between the main personnel, fixed assets and other expenditure groups. These groupings differ from those used under cash accounting and are not directly comparable. This table includes expenditure on Conflict Prevention (RfR2). More information on the minor revisions in 2007/08 can be found in Notes 34 and 35 of the MOD Annual Report & Accounts.
RAB Stage 2
  Inclusive of non-recoverable VAT at Current Prices (£ million)
  Outturn   Outturn   Outturn   Outturn   Outturn   Outturn
2003/04   2004/05   2005/06   2006/07   2007/08   2008/09
Defence Spending 30 861   32 515   33 164   34 045   37 387 r 38 579
                       
Departmental Expenditure Limits 37 174   38 323   39 751   40 654   43 634 r 45 473
                       
Resource DEL 31 266   31 798   32 911   33 457   35 689 r 36 715
of which:                      
 
Expenditure on Personnel
 10 435   10 996   11 255   11 204   11 474 r 11 723
 
of which:    for Armed Forces
 7 974   8 047   8 263   8 423   8 646 r 8 937
 
                   for Civilians
 2 461   2 948   2 992   2 781   2 828 r 2 786
                         
 
Depreciation/Impairments
 6 313   5 808   6 587   6 609   6 247   6 894
 
Cost of Capital
 2 770   3 026   3 106   3 242   3 371   3 626
 
Equipment Support1
3 804   3 623   3 542   3 793   4 272   4 292
 
Stock Consumption2
 1 060   1 079   1 039   1 140   1 071   1 181
 
Property Management3
 1 393   1 509   1 367   1 258   1 523   1 508
 
Movements4
 491   711   729   774   858   975
 
Accommodation & Utilities5
 643   581   735   786   750   866
 
Professional Fees6
 549   565   553   482   471   391
 
Fuel7
 161   239   369   416   537   695
 
Hospitality & Entertainment
 8   6   5   4   4   4
 
PFI Service Charges
 *   *   870   1 148   1 276   1 482
 
IT & Communications
 738   678   643   719   655   852
 
Research and Expensed Development
 1 011   996   994   988   952   1 115
 
Rentals Paid Under Operating Leases
 214   229   56   138   152   148
 
Fixed Assets Written Off/Written On
 26   - 86   - 302   730   870   424
 
Movement in Stock Related Provisions
 *   *   *   *   137   - 250
 
Stock Written Off
 528   704   759   95   432   130
 
Other Costs8
 1 121   1 134   604   - 69   637 r 659
                         
                         
Capital DEL  5 908   6 525   6 840   7 197   7 945   8 758
of which:                       
 
Expenditure on Fixed Asset Categories
                      
                         
 
Intangible Assets9
 1 665   1 580   1 550   1 744   1 756   1 311
 
Land and Buildings
 54   388   31   45   126   163
 
Single Use Military Equipment10
 90   435   402   404   657   552
 
Plant, Machinery & Vehicles
 78   124   64   32   36   30
 
IT & Communications Equipment
 183   134   180   206   361   336
 
Assets Under Construction11
 3 931   4 335   4 879   5 099   5 450   6 515
 
Transport12
 *   73   13   33   55   239
 
Capital Spares12
 581   *   *   *   *   *
 
Capital Loan Repayment
 - 28   - 25   - 53   - 8   - 10   - 65
 
Capital Income13,14
 - 646   - 519   - 225   - 358   - 486   - 323
                         
AME  1 011   908   890   582   510   214
of which:                       
 
War Pensions
 1 116   1 110   1 067   1 038   1 014   1 000
 
Other15
 - 105   - 202   - 177   - 456   - 504   - 785
Source: MOD Directorate of Defence Resources
1.    Internal and contracted out costs for equipment repair and maintenance.
2.    Consumption of armament, medical, dental, veterinary, oil, clothing, and general stores.
3.    Estate and facilities management services and costs for buildings' maintenance.
4.    Cost of transportation of freight and personnel.
5.    Charges include rent, rates, gas, electricity, water and sewerage costs.
6.    Fees, such as legal costs, paid to professional organisations.
7.    Relates to fuel consumption by military vehicles, ships and aircraft.
8.    Other costs can include Grants-in-aid, Exchange rate movements, Provisions, receipts, welfare, medical and legal costs. Movement in Stock Related
       Provisions, that have previously been shown under 'Other Costs', are now shown separately.
9.    Intangible Assets comprise the development costs of major equipment projects and Intellectual Property Rights.
10.  Single Use Military Equipment (SUME) are assets which only have a military use, such as tanks and fighter aircrafts. Dual use items i.e. those that also have        a civilian use are recorded under the other categories.
11.  Assets Under Construction (AUC) largely consist of major weapons platforms under construction in the Defence Equipment & Support, and a smaller
       element of Buildings under construction. Once construction is complete, those platforms will transfer to the relevant Top Level Budget holder as SUME on
       their Balance Sheets.
12.  From 2004/05 Transport has been recorded as a separate category and Capital Spares has been removed as a category, with the costs previously
       recorded here being incorporated into Transport or SUME.
13.  Redemption of QinetiQ preference shares refers to the proceeds received from the partial redemption of the redeemable preference shares during 2004/05
14.  Capital income is receipts for the sale of fixed assets.
15.  Under Stage 2 of RAB, this category now contains only demand led payments, such as cash release and cost of capital credit on nuclear provisions and        QinetiQ loan repayments.