Coalition to cut MoD costs by quarter

20 May 2010

Ministry of Defence running costs are to be cut by 25 per cent, with savings potentially used to fund the refurbishment of armed forces' accommodation, the coalition government has announced.

The full text of the policies agreed between Conservative and Liberal Democrat negotiators has now been released, and plans for cuts in the MoD have already been criticised by one union, which said defence capability could be "hamstrung" as a result.

Steve Jary, national secretary of trade union Prospect, said it was "irrational" to announce the cuts ahead of the strategic defence review (SDR).

"Liam Fox plucked the 25 per cent figure out of the air last year. It is based on no analysis at all," said Jary. "We urge the government to step back and complete the SDR before finalising its spending plans."

However, defence industry body ADS has said it will to offer "sound advice and services" to help the government achieve its 25 per cent target. ADS welcomed the government's plans to boost defence exports, which will be targeted at countries using equipment for "legitimate purposes", rather than "internal repression".

Among the governments other plans for defence are several amalgamated policies from the Lib Dem and Conservative manifestos.

The Liberal Democrats had called for the Trident nuclear deterrent to be included in the forthcoming strategic defence review, but the final coalition agreement commits the coalition to proceeding with the replacement nuclear deterrent programme. The coalition has agreed to scrutinise the programme costs closely, while Liberal Democrat MPs will be allowed to "make the case" for alternatives.

The government has also committed to pressing for continued progress on multilateral nuclear disarmament and will also push for a full international ban on cluster munitions.

The Conservative pledge to double the operational allowance for Armed Forces personnel serving in Afghanistan has been adopted, and armed forces pay is to be included in government plans for a fair pay review in future.

The plans also include a pledge to treat injured personnel in dedicated military wards.

Both parties have agreed to "rebuild the military covenant" through a series of welfare measures including:
• ensuring that rest and recuperation (R&R) leave "can be maximised";
• Providing university and further education scholarships for the children of servicemen and women killed in action since 1990;
• Supporting service leavers to study at universities;
• Creating a "troops for teachers" programme to recruit ex-service personnel into the education sector;
• providing extra support for veterans' mental health needs.