Chapter 1 - Finance
                               
Table 1.14 Ministry of Defence Estimated Balance of Payments for Trade in Services
Balance of Payments is a measure of the UK's trading account with the rest of the world. Trade in Services are provisions of services (e.g. training, cleaning services, IT support etc) between UK residents and non-residents, and transactions in goods which are not freighted out of the country in which they take place; these transactions are not recorded in the official 'Trade in Goods' statistics. A detailed discussion of these concepts can by found in the latest edition of The Pink Book published by the Office for National Statistics. More details are available in Defence Statistics Bulletin No.4 or in the National Statistics Quality Review report on Balance of Payments: Trade in Services.

The data in this table are outside the scope of National Statistics because they do not meet all of the high professional quality assurance standards set out in the Code of Practice for Official Statistics.
Current Prices (£ million)
    1999   2002     2003 1 2004 2005   2006 2007 2008 2
Net Balance
 -1 958   -1 500 r || -2 021   -1 762 -1 717 r -1 979 -2 338 -3 254  
                               
Total Debits
 2 157   1 764     2 411   2 200 2 152 r 2 471 2 763 3 559  
Expenditure3
                            
 
Germany
 1 258   799     974   1 190 1 231 r 1 244 1 501 2 019  
 
Other identified NATO countries
 670   731     1 139   801 573   755 881 1 307  
 
Mediterranean
 130   156     173   168 182   226 175 92  
 
Far East
 -   -     -   - -   - - -  
 
Other areas
 99   78     125   41 166   245 206 140  
                               
Total Credits
 198   264 r   390   438 435   492 425 304  
Receipts4
                            
 
Receipts from US Forces in UK
 137   154     142   126 128   126 116 127  
 
Other Receipts
 61   110 r || 248   312 307   366 309 177  
Source: DASA (Defence Expenditure Analysis)
1. The increase in 'Total Debits' in 2003 was largely attributable to increased spending on services as a result of military activity in Iraq.
2. The large increase in 'Total Debits' in 2008 was mainly due to two factors. First, the stronger Dollar / Euro exchange rates against the pound which has
    increased the cost of purchasing these currencies during 2008 and second, an increase in expenditure in both currencies on Urgent Operational
    Requirements.
3. Based on drawings of foreign exchange.
4. A mix of export sales and receipts from other Government and International Organisations for services provided overseas and to overseas forces based in
    the UK.