Defence Committee Highlights Significant Increase In Cost of Operations In Afghanistan

The Government's forecast for the costs of military operations in Afghanistan in this financial year reveals a significant increase compared to the last financial year, says a Report from the House of Commons Defence Committee published today (Winter Supplementary Estimates 2008-09, HC 52).>> Meanwhile, the forecast operational costs for Iraq have remained broadly the same, and have even increased in one or two areas, despite the expected drawdown early in 2009.>> --The forecast cost of operations in Afghanistan, including indirect resource costs, is 54.1% higher at 2.318 billion than the outturn from 2007-08 of 1.505 billion. There are particularly significant increases in the expected costs of capital additions and equipment support. MPs say this probably reflects the Governments announcement in late October to buy 700 additional armoured vehicles, but say that the Ministry of Defence must provide more detail on these costs.>> --The forecast cost of operations in Iraq has declined by just 4.1%, despite the expectation of drawdown in early 2009. Surprisingly, two cost areas for Iraq show prominent growth - military personnel and equipment support. The MPs say the MoD must explain why some costs are rising while others are remaining static or falling in the context of the expected drawdown next year.>> --The Ministry of Defence currently expects to spend 1.063 billion on Urgent Operational Requirements in this financial year. If these costs end up being greater than 1.065 billion then half of the excess will fall on to the MoDs main budget in financial year 2010-11. The MPs request a paper setting out the implications of this for future defence spending.