Chapter 1 - Finance
                               
Table 1.18 MOD Operations and Peacekeeping Costs
This table shows a breakdown of the actual net operating and capital costs for MOD operations in Iraq, Afghanistan and Libya as well as the Conflict Pool. These costs cover the net additional costs (both direct and indirect) incurred by the Department as a result of major military operations: that is, those costs over and above those that the Department would have incurred had the operation not been undertaken. For example, expenditure on wages and salaries or savings from cancelled training exercises are deducted from the total cost of the operation.

Table 1.18a shows the annual audited costs of operations in Iraq, Afghanistan and Libya since 2002/03.

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 - International Defence Statistics.
Inclusive of non-recoverable VAT at Current Prices (£ million)
  Iraq   Afghanistan   Libya   Conflict Pool
2008/09 2009/10 2010/11   2008/09 2009/10 2010/11   2008/09 2009/10 2010/111   2008/092 2009/103 2010/11
Total by Operation 1 381 342 92   2 623 3 821 3 774   - - 22   22 55 61
 
Total Operating Costs 1 124 299 64   1 655 2 330 2 720   - - 22   22 53 60
of which:                              
 
Direct Costs:                              
 
Service Manpower 115 35 7   73 174 192   - - -   2 18 17
Civilian Manpower 21 7 1   15 26 28   - - -   1 2 1
Infrastructure costs 133 53 10   162 236 336   - - -   5 8 9
Equipment support 306 101 21   384 551 605   - - 1   - 1 1
Other costs and services 153 53 10   312 437 503   - - 1   9 26 32
Receipts and Other Income4 - - 16 - 1   -24 - 55 - 24   - - -   - 2 - 1 - 1
Inventory/Other Consumption 207 13 4   527 570 784   - - 2   6 - 1 -
Legal Claims Liability .. 6 7   .. 1 4   - - -   .. - -
 
Indirect Costs:                              
 
Stock write off / (write-on) 1 - -   - 16 30   - - -   - - -
Provisions - 5 -   - 2 -   - - -   - - -
Depreciation, amortisation
(including UOR5) & fixed asset write-off		 164 35 1   187 331 260   - - 17   - - -
Cost of capital 24 10 -   18 45 -   - - -   - - -
Net foreign currency surplus/deficit .. 2 4   .. - 2 2   - - -   .. - -
Non nuclear provision credit against provision .. - 6 -   .. - 1 -   - - -   .. - -
 
Total Capital Costs 257 44 28   968 1 491 1 054   - - -   - 1 1
Of which:                              
 
Capital Costs (by area)                              
Capital addition
(including UOR5 and Recuperation)		 257 44 28   968 1 491 1 054   - - -   - 1 1
Source: MOD Annual Report & Accounts
1. Operations in Libya began in March 2011.
2. In 2008/09 the Conflict Pool consists only of costs incurred in the Balkans.
3. From 2009/10 the Conflict Pool consists of the Balkans, Stabilisation Aid Fund and the Programme Pool.
4. Negative figures on the income line represent income generated on operations (e.g. support to other nations in respect of catering and medical services).
5. UOR = Urgent Operational Requirements. (See Glossary for more information).