Deborah Haynes and Tom Coghlan
As a group of MPs warned that the Ministry of Defence faces a funding black hole of up to £80 billion over the next decade because of poor budgeting, it emerged that up to 500 soldiers would lose their jobs under a plan to modernise the Army.
Despite the conflict in Afghanistan, the Armed Forces are preparing for swingeing cuts to procurement programmes and personnel under a strategic defence review after the election.
The MoD is committed to a wish list of new kit, from armoured vehicles to fighter jets, but lacks the money to foot the bill — a shortfall that needs to be addressed while at the same time maintaining Britain’s ability to defend itself. As part of efforts to increase efficiency with limited resources, the MoD yesterday announced that it would terminate the contracts of between 300 and 500 troops in positions that are not critical to operations in Afghanistan.
The military has not exercised its right to terminate soldiers’ employment since 2002. Those targeted under the new plan will have completed either 12 or 15 years of service.
Despite concern about overstretch, the Army claimed that it was closer to full strength than for years. The MoD said that the redundancy drive would make it possible to employ more soldiers in roles needed for Afghanistan, such as that of bomb-disposal experts.
Those selected to leave will be given one year’s notice, help with finding a job and a grant of £10,000. The process, known as Manning Control Points, will happen from April 2011.
Also under pressure are the military’s 15 top-spending equipment projects, which are expected to cost more than £60 billion. The Public Accounts Committee said in a report released today that the defence budget was unaffordable. “Matters have worsened to the point where the department will have to take difficult decisions, such as to cancel whole equipment programmes,” Edward Leigh, committee chairman, said.
The National Audit Office has calculated that the budget deficit would rise to £36 billion after ten years if defence funding remained flat, the committee noted. “But based on a more pessimistic assumption of a 4 per cent reduction year-on-year for the next five years ... then the budget deficit could be as high as £80 billion”.
Quentin Davies, Minister for Defence Equipment and Support, said the Government was “taking tough decisions to ensure that a strong equipment programme stays within the parameters of a rising MoD budget”.
Times Online
