Chapter 1 - Finance
                       
Table 1.10 Estimated Defence Expenditure Outturn in the UK: Breakdown by Industry Group
This table estimates the amount of money the MOD spends directly with UK industry and commerce broken down by industrial group. Figures exclude 'internal' MOD expenditure such as pay and allowances. Industrial groupings are based on the relevant Standard Industrial Classification (SIC) 1992, 2003 or 2007 guidelines maintained by the Office for National Statistics. To view the SIC Codes that comprise the various table headings click here. More detailed information on the SIC 2007 codes can be found here. The figures have been rounded to the nearest £10M with the differences between the totals and sums of the components being caused by this rounding.

Further information about the quality of data and methods used in the production of these statistics, along with details of their intended use can be found in the Background Quality Report - Industry Statistics.
VAT exclusive at Current Prices (£ million)
SIC(92)/SIC(03)/SIC(07) Section 2003/04 2004/05 2005/06 2006/07 2007/08   2008/09 1,2 2009/10 3
Total 14 640 14 490 16 030 16 490 16 450 || 18 540 r 20 590  
                       
A,B
 Agriculture, Fishing and Mining - - - - - || -   -  
 
C
 Manufacturing, excluding those industries itemised below 1 470 1 350 1 740 1 640 1 910 || 2 350 r 2 460  
 
  Weapons & Ammunition 740 820 1 030 1 080 900 || 1 030   1 720  
  Data Processing Equipment 180 110 70 50 40 || 100   100  
  Other Electrical Engineering 180 150 180 200 250 || 220   260  
  Electronics 600 910 1 160 1 000 950 || 920   670  
  Precision Instruments 760 690 750 600 530 || 540   690  
  Motor Vehicles & Parts 170 220 330 300 320 || 490   450  
  Shipbuilding & Repairing 1 160 1 060 1 100 1 150 1 110 || 1 250   2 290  
  Aircraft & Spacecraft 2 050 1 810 1 730 1 960 2 100 || 2 480   2 640  
 
D,E
 Electricity, Gas & Water 210 230 260 280 220 || 350 r 400  
 
F
 Construction 1 190 1 230 1 310 1 380 1 270 || 1 680   1 640  
 
G
 Wholesale and Retail Trade; Repair of Motor Vehicles 180 160 180 230 280 || 330   350  
 
H,I,J
 Hotels & Restaurants 210 200 250 230 150 || 160   170  
  Transport via Railways 70 60 70 70 80 || 80 r 60  
  Other Land Transport (incl. via pipelines) 70 20 30 20 40 || 50 r 90  
  Water, Air and Auxiliary/freight supply transportation 490 380 370 450 560 || 520 r 420  
  Post & Courier Services 10 10 10 10 10 || 10   10  
  Telecommunications 530 310 300 330 270 || 180 r 150  
 
K,L,M,N,O,
P,Q,R,S,T
 Financial Services, Business Activities, Education, Health, & Other Service Activities excluding those industries itemised below4,5 2 590 2 750 2 800 2 880 2 670 || 2 510 r 2 590  
                       
  Real Estate & Renting 1 000 1 230 1 460 1 500 1 690 || 2 090 r 2 160  
  Computer Services 800 790 930 1 110 1 120 || 1 190 r 1 250  
Source: DASA(Defence Expenditure Analysis)
1. For 2008/09 onwards, industrial groupings are based on the 2007 Standard Industrial Classification. The increase in spend during 2008/09 is not due to the change to SIC 2007 classifications but rather an increase in overall MOD expenditure on goods and services.
2. Revisions to the 2008/09 estimates are due to corrections to the misallocation of overseas non-equipment expenditure in that year.
3. The large increase in 2009/10 is due to higher levels of contract expenditure in a number of equipment related industry sectors, particularly in Shipbuilding & Repairing and Weapons & Ammunition. The former was driven by increased expenditure against a number of contracts related to the Future Aircraft Carrier (CVF) and some submarine related contracts; the latter due to high levels of expenditure on the MOD's main munitions contracts resulting from increased levels of operational tempo in Afghanistan during the year. An increase in expenditure on Urgent Operational Requirements (UORs) has also contributed to the overall increase in equipment related expenditure.
4. 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.
5. The quality of data available for the service industries is insufficient to identify these SICs separately.