Chapter 1 - Finance
                         
Table 1.5 MOD Resources by Budgetary Areas1
This table provides a detailed breakdown of resource consumption by budgetary area for 2003/04 through to 2008/09. Under Spending Review 2002 rules, figures for financial years 2003/04 onward include non-cash items such as depreciation and cost of capital charge that previously were part of Annually Managed Expenditure (AME).

More information on the minor revisions in 2007/08 can be found in Notes 34 and 35 of the MOD Annual Report & Accounts.

From 2007/08, changes to the MOD Top Level Budget (TLB) structure have been reflected in the figures and highlighted at footnotes 2-5.

This table includes expenditure on Conflict Prevention (RfR2).
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
Departmental Expenditure Limits (DEL) 37 174   38 323   39 751   40 654   43 634 r 45 473
                         
 
Request for Resources 1: PROVISION OF DEFENCE CAPABILITY
 35 681   37 211   38 484   38 858   40 602 r 41 382
                         
Resource DEL 30 033   30 860   31 855   32 009   33 493 r 33 850
of which:                      
 
Commander-in-Chief Fleet2
 3 242   3 569   3 548   2 148   2 185   2 182
 
General Officer Commanding (Northern Ireland)
 649   626   580   389   *   *
 
Commander-in-Chief Land Forces3
 5 079   5 341   5 632   4 322   6 495   6 707
 
Air Officer Commanding-in-Chief RAF Strike Command
 3 385   3 503   4 043   1 924   *   *
 
Commander-in-Chief Air Command4
 *   *   *   *   2 635   2 725
 
Chief of Joint Operations
 524   493   570   391   475   437
 
Chief Defence Logistics
 7 758   7 452   7 588   12 788   *   *
 
Defence Equipment & Support5
 *   *   *   *   16 236   14 688
 
2nd Sea Lord/Commander-in-Chief Naval Home Command
 693   763   778   *   *   *
 
Adjutant General (Personnel and Training Command)
 1 743   1 778   1 924   1 576   *   *
 
Air Officer Commanding-in-Chief RAF Personnel and Training Command
 995   1 125   904   762   *   *
 
Central
 2 695   3 136   2 458   2 172   2 297 r 1 718
 
Defence Estates6
 *   *   1 056   2 692   2 628   2 613
 
Defence Procurement Agency
 2 850   2 568   2 272   2 321   *   *
 
Science Innovation Technology
 420   506   502   524   542   500
 
Administration7
 *   *   *   *   *   2 280
                         
                         
Capital DEL8 5 648   6 351   6 629 || 6 849   7 109   7 532
of which:
                      
 
Commander-in-Chief Fleet2
 37   17   7 || 14   29   20
 
General Officer Commanding (Northern Ireland)
 43   28   4 || 2   *   *
 
Commander-in-Chief Land Forces3
 21   153   47 || 75   123   149
 
Air Officer Commanding-in-Chief RAF Strike Command
 40   27   10 || 7   *   *
 
Commander-in-Chief Air Command 4
 *   *   * || *   13   14
 
Chief of Joint Operations
 22   24   19 || 4   34   55
 
Chief Defence Logistics
 1 210   1 121   1 045 || 1 243   *   *
 
Defence Equipment & Support5
 *   *   * || *   6 661   7 023
 
2nd Sea Lord/Commander-in-chief Naval Home Command
 28   23   11 || *   *   *
 
Adjutant General (Personnel and Training Command)
 41   26   17 || 15   *   *
 
Air Officer Commanding-in-Chief RAF Personnel and Training Command
 18   24   13 || 11   *   *
 
Central
 - 96   322   - 44 || 44   41   - 182
 
Defence Estates6
 *   *   274 || 140   208   452
 
Defence Procurement Agency
 4 284   4 586   5 226 || 5 294   *   *
 
Science Innovation Technology
 *   *   * || *   *   1
                         
 
Request for Resources 2: CONFLICT PREVENTION
 1 493   1 112   1 266   1 797 r 3 032   4 091
 
(not broken down by Top Level Budget)
                      
Resource DEL 1 233   938   1 055   1 448   2 196   2 865
Capital DEL 260   174   211   348   836   1 226
                         
Annually Managed Expenditure (AME)
 1 011   908   890   582   510   214
                         
 
Request for Resources 1: PROVISION OF DEFENCE CAPABILITY9
 - 105   - 202   - 177   - 456   -504   - 785
                         
 
Commander-in-Chief Fleet2
 - 2   *   8   *   *   *
 
General Officer Commanding (Northern Ireland)
 *   *   *   *   *   *
 
Commander-in-Chief Land Forces3
 *   *   *   *   *   *
 
Air Officer Commanding-in-Chief RAF Strike Command
 *   *   *   *   *   *
 
Commander-in-Chief Air Command4
 *   *   *   *   *   *
 
Chief of Joint Operations
 5   - 3   7   9   *   *
 
Chief Defence Logistics
 - 66   26   3   67   *   *
 
Defence Equipment & Support5
 *   *   *   *   169   - 91
 
2nd Sea Lord/Commander-in-Chief Naval Home Command
 *   *   *   *   *   *
 
Adjutant General (Personnel and Training Command)
 *   *   *   *   *   *
 
Air Officer Commanding-in-Chief RAF Personnel and Training Command
 *   2   *   *   *   *
 
Central
 6   2   - 2   *   *   -1 177
 
Defence Estates6
 *   *   *   *   -673   483
 
Defence Procurement Agency
 - 49   - 228   - 193   - 545   *   *
 
Science Innovation Technology
 *   *   *   *   *   *
 
Not Allocated
 *   *   *   13   *   *
                         
  Request for Resources 2: CONFLICT PREVENTION *   *   *   *   *   *
                         
 
Request for Resources 3: WAR PENSIONS & ALLOWANCES, etc
 1 116   1 110   1 067   1 038   1 014   1 000
Source: MOD Directorate of Defence Resources
1. Full TLB definitions are available in the Glossary.
2. C-in-C Fleet TLB includes the former 2nd Sea Lord/C-in-C Naval Home Command TLB from 2006/07.
3. Land Forces includes the former Adjutant General (Personnel and Training Command).
4. Air Command is an amalgamation of 'Air Officer Commanding in Chief RAF Personnel and Training Command' and 'RAF Strike Command'.
5. Defence Equipment & Support was created from the amalgamation of the 'Defence Logistic Organisation' and 'Defence Procurement Agency'.
6. The 'Defence Estates' TLB was formed on 1 April 2005. This was formerly part of 'Central' TLB. There is no historic data for this new TLB.
7. From 1 April 2008, the Operating Cost Statement has been analysed into Programme and Administration costs. This is as a result of the Comprehensive     Spending Review settlement in 2007 which required separate disclosure.
8. Until 1 April 2006 assets were managed by individual TLB. From this date it changed as follows:
    Chief of Defence Logsitics and the Defence Procurement Agency and then from 1 April 2007, the DE&S, became one of two Single Balance Sheet Owners
    (SBSO) with financial responsibility for the MOD's Assets, the other SBSO being Defence Estates. As such the DE&S became responsible for all non-estate
    assets, namely SUME (Single Use Military Equipment), Plant and Machinery, Transport and IT&Comms assets after this date.
9. AME for 2003/04 onwards includes accounting charges relating to nuclear decommissioning, loan interest and cost of capital charges for self financing     public corporations. The negative AME figures arise from the cash release from the nuclear decommissioning provision and the cost of capital charge     calculated on a net balance sheet liability (as opposed to net assets).