Chapter 1 - Finance
               
Table 1.4 Estimated MOD Equipment Expenditure1
This table presents estimates of MOD equipment expenditure broken out by the main categories of expenditure. Aggregate MOD Equipment expenditure here has been used to indicate expenditure on acquisition, maintenance, repair and update of items such as plant, machinery and vehicles and fighting equipment plus associated Research & Development, and expenditure on administrative computers. It is therefore a wider definition to that used by the MOD Equipment and Equipment Support Plans, and covers both military and non-military equipment (including dual use equipment) used by MOD service and civilian personnel. The data are derived directly from the MOD Annual Report & Accounts.

This table is outside the scope of National Statistics because it is still under review to ensure it meets all of the high professional quality assurance standards set out in the Code of Practice for Official Statistics.
Inclusive of non-recoverable VAT at Current Prices (£ million)
  2003/04 2004/05 2005/06 2006/07 2007/08   2008/09
Estimated MOD Equipment Expenditure 10 886 10 754 10 974 11 672 12 380   13 386
               
Of which:              
               
Capital Expenditure on Equipment2,3 4 404 4 555 4 913 5 146 5 401   6 669
Equipment Support4 3 804 3 623 3 542 3 793 4 272   4 292
Research & Development5 2 677 2 576 2 519 2 732 2 707   2 426
Source: MOD Annual Report & Accounts
1. These estimates are not directly comparable to the old cash equipment procurement time series last published in 2000/01(UKDS 2002) due to the exclusion of     in year stock purchases. It is not possible to identify that element of stock purchases which wholly relates to MOD equipment expenditure.
2. Capital expenditure on Equipment includes those Assets Under Construction (AUC) relating to Single Use Military Equipment (SUME) only plus in year     purchases on IT and communications equipment, vehicles, SUME and plant and machinery. AUC SUME largely consist of major weapons platforms under     construction in the Defence Equipment & Support (DE&S) Organisation (formerly the Defence Procurement Agency and Defence Logistics Organisation), and     excludes that element of buildings under construction and land which would fall outside the wider definition of MOD equipment procurement detailed in the     commentary above. Once construction is complete, those platforms will transfer to the relevant Single Balance Sheets Owners (SBSO) as SUME on their     Balance Sheets.
3. During 2007-08, the augmentation of the MOD Chart of Accounts has enabled more detailed reporting of the 'AUC-Other' classification by category type by the     Defence Equipment & Support Organisation. This has improved the coverage of equipment expenditure reported in the table from 2007-08 by providing a more     distinct separation of equipment (particularly dual use) from non-equipment expenditure (e.g. construction, and buildings, and other administrative costs).
4. Internal and contracted out costs for equipment repair and maintenance.
5. The data are derived from information held on MOD accounting systems relating to expenditure on Additions to Intangible Assets and Research & Expensed
    Development. Development activity associated with acquiring assets is the most significant part of this expenditure. These figures do not fully align with those
    in Table 1.8 which present MOD R&D expenditure on a different basis using OECD Frascati definitions. (See Defence Statistics Bulletin No.6 & No.9). The     estimates in Table 1.4 will include items which fall outside these definitions but nonetheless broadly relate to the wider definition of MOD equipment
    expenditure as described in the commentary above.