Chapter 1 - Finance
                   
Table 1.9 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 move to RAB 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 and 2003 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
 1
2003/04
2004/05
2005/06
2006/07
2007/08
Total
     13 810 || 14 640 14 490 16 030 16 490 16 450
                   
A, B, C
   Agriculture, Fishing and Mining - || - - - - -
                   
                   
D
   Manufacturing, excluding those industries itemised below 1 470 || 1 470 1 350 1 740 1 640 1 910
                   
  29.6 Weapons & Ammunition 790 || 740 820 1 030 1 080 900
  30 Data Processing Equipment 170 || 180 110 70 50 40
  31 Other Electrical Engineering 170 || 180 150 180 200 250
  32 Electronics 640 || 600 910 1 160 1 000 950
  33 Precision Instruments 810 || 760 690 750 600 530
  34, 35.2,
35.4, 35.5		 Motor Vehicles & Parts 130 || 170 220 330 300 320
  35.1 Shipbuilding & Repairing 1 070 || 1 160 1 060 1 100 1 150 1 110
  35.3 Aircraft & Spacecraft 2 380 || 2 050 1 810 1 730 1 960 2 100
                   
                   
E
   Electricity, Gas & Water 190 || 210 230 260 280 220
                   
                   
F
   Construction 990 || 1 190 1 230 1 310 1 380 1 270
                   
                   
G
   Wholesale, Retail & Repair of Motor Vehicles 170 || 180 160 180 230 280
                   
                   
H, I
 55 Hotels & Restaurants 200 || 210 200 250 230 150
  60.1 Transport via Railways 80 || 70 60 70 70 80
  60.2,60.3 Other Land Transport (incl. via pipelines) 70 || 70 20 30 20 40
  61,62,63 Water, Air and Auxiliary/freight supply transportation 420 || 490 380 370 450 560
  64 Post & Courier Services 10 || 10 10 10 10 10
  64.2 Telecommunications 320 || 530 310 300 330 270
                   
                   
J, K, L, M, N, O, P
   Financial Services, Business Activities, Education, Health, & Other Service Activities excluding those industries itemised below2,3 2 150 || 2 590 2 750 2 800 2 880 2 670
                   
                   
  70, 71 Real Estate & Renting 950 || 1 000 1 230 1 460 1 500 1 690
  72 Computer Services 640 || 800 790 930 1 110 1 120
Source: DASA (Defence Expenditure Analysis)
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. 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.
3. The quality of data available for the service industries is insufficient to identify these SICs separately.