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 2009/10. 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). Under HM Treasury guidance, from 2009/10 Impairments previously scored under Resource DEL have now moved to Annually Managed Expenditure (AME).

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

Please refer to the Resource Accounting & Budgeting section to view important information relating to the introduction of the International Financial Reporting Standard (IFRS) and the implementation of the Clear Line of Sight (CLoS) Alignment project which will lead to presentational changes to this table and to the reporting of MOD accounts from 2009/10 and beyond.

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   Outturn
2003/04   2004/05   2005/06   2006/07   2007/08   2008/09   2009/10
Departmental Expenditure Limits (DEL)
 37 174   38 323   39 751   40 654   43 634   45 473 || 47 647
                             
 
Request for Resources 1: PROVISION OF DEFENCE CAPABILITY
 35 681   37 211   38 484   38 858   40 602   41 382 || 43 429
                             
Resource DEL
 30 033   30 860   31 855   32 009   33 493   33 850 || 35 890
of which:
                          
 
Commander-in-Chief Navy Command2
 3 242   3 569   3 548   2 148   2 185   2 182 || 2 211
 
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 || 6 990
 
Air Officer Commanding-in-Chief RAF Strike Command
 3 385   3 503   4 043   1 924   *   * || *
 
Commander-in-Chief Air Command 4
 *   *   *   *   2 635   2 725 || 2 790
 
Chief of Joint Operations
 524   493   570   391   475   437 || 444
 
Chief Defence Logistics
 7 758   7 452   7 588   12 788   *   * || *
 
Defence Equipment & Support5
 *   *   *   *   16 236   14 688 || 16 496
 
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   1 718 || 1 620
 
Defence Estates6
 *   *   1 056   2 692   2 628   2 613 || 2 732
 
Defence Procurement Agency
 2 850   2 568   2 272   2 321   *   * || *
 
Science Innovation Technology
 420   506   502   524   542   500 || 466
 
Administration7
 *   *   *   *   *   2 280 || 2 141
                             
Capital DEL
 5 648   6 351   6 629   6 849   7 109   7 532 || 7 539
of which:
                          
 
Commander-in-Chief Navy Command2
 37   17   7   14   29   20 || 12
 
General Officer Commanding (Northern Ireland)
 43   28   4   2   *   * || *
 
Commander-in-Chief Land Forces3
 21   153   47   75   123   149 || 213
 
Air Officer Commanding-in-Chief RAF Strike Command
 40   27   10   7   *   * || *
 
Commander-in-Chief Air Command 4
 *   *   *   *   13   14 || 20
 
Chief of Joint Operations
 22   24   19   4   34   55 || 93
 
Chief Defence Logistics
 1 210   1 121   1 045   1 243   *   * || *
 
Defence Equipment & Support5
 *   *   *   *   6 661   7 023 || 6 749
 
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 || - 67
 
Defence Estates6
 *   *   274   140   208   452 || 518
 
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   3 032   4 091 || 4 218
 
(not broken down by Top Level Budget)
                          
Resource DEL
 1 233   938   1 055   1 448   2 196   2 865 || 2 682
Capital DEL
 260   174   211   348   836   1 226 || 1 536
                             
Annually Managed Expenditure (AME)8
 1 011   908   890   582   510   214 || 2 417
                             
 
Request for Resources 1: PROVISION OF DEFENCE CAPABILITY9
 - 105   - 202   - 177   - 456   -504   - 785 || 1 437
                             
 
Commander-in-Chief Navy Command2
 - 2   *   8   *   *   * || *
 
General Officer Commanding (Northern Ireland)
 *   *   *   *   *   * || *
 
Commander-in-Chief Land Forces3
 *   *   *   *   *   * || 1
 
Air Officer Commanding-in-Chief RAF Strike Command
 *   *   *   *   *   * || *
 
Commander-in-Chief Air Command4
 *   *   *   *   *   * || 1
 
Chief of Joint Operations
 5   - 3   7   9   *   * || *
 
Chief Defence Logistics
 - 66   26   3   67   *   * || *
 
Defence Equipment & Support5
 *   *   *   *   169   - 91 || 255
 
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 || 271
 
Defence Estates6
 *   *   *   *   -673   483 || 910
 
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 || 980
Source: MOD Directorate of Defence Resources
1. Full TLB definitions are available in the Glossary at the back of this publication.
2. C-in-C Navy Command 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 'Chief of Defence Logistics' 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. The large increase in AME in 2009/10 is mainly due to the movement of Impairments from Resource DEL to Annually Managed Expenditure following guidance
    issued by HM Treasury. The negative figure in previous years has largely been due to fluctuations in the level of Derivatives, which are a set of financial
    instruments whereby MOD buy forward contracts at a certain rate to lock into a level of payment. The value of Derivatives recorded in the Accounts is the
    difference between what the Department would have paid if it had bought at a spot exchange rate against what it actually paid buying a forward rate. Last
    year the Department made large gains (scored as a negative in the Accounts) in Derivatives due to fluctuations in US Dollar and Euro exchange rates: this
    year the gain was not significant.
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).