The U.K. government recently committed to spending approximately $4.5 billion to fund vital future military equipment over the current planned budget, Ministry of Defence officials said.
The funding increase of 1 percent a year in real terms would fund the Future Force 2020 plan beyond 2014. The increase in funds means Defence Secretary Liam Fox could order significant equipment over the next decade, the Ministry of Defence said in a statement.
New equipment orders would include 14 extra Chinook helicopters from 2014 on. Chinooks are produced by Boeing [BA].
The funds will allow the Queen Elizabeth aircraft carrier to convert to be equipped with catapult and arrestor gear. BAE Systems is the prime contractor for the carrier, Thales and Babcock Marine are part of the team working on the ship.
Also, initial spending on the new Joint Strike Fighter fast jets, under development by Lockheed Martin [LMT], would be funded, delivering carrier strike capability from 2020.
The plan would also see development of the Global Combat Ship, three new airseeker signals intelligence and surveillance aircraft in 2014, and upgraded Warrior armored vehicles.
“This commitment to increase defence equipment funding after 2015 will ensure our Armed Forces remain a formidable fighting force on the world stage,” Fox said. “The Government has committed to deliver a package of new money, further efficiencies, and adjustment to the future defence equipment program, turning the unfunded aspirations of the last government into real contracts and real equipment. For the first time in a generation, the MoD will have brought its plans and budget broadly into balance, allowing it to plan with confidence for the delivery of the future equipment program.”
The funding announcement is part of the effort to implement the Strategic Defence and Security Review, including the Basing and Reserves Reviews. The Future Reserves 2020 Study identified that the Army can meet the vision for Future Force 2020 in a more cost effective way, by changing the balance between Regulars and Reserves, MoD said. The Department will now plan for an Army of around 120,000 comprised of Regulars and Reserves, with a ratio of about 70 per cent Regulars to 30 per cent Territorial Army.
Chief of the Defence Staff Gen. Sir David Richards said: “Decisions by the Secretary of State represent a key step forward in the radical transformation program Defence is undertaking. If we get it right, this will result in a modern, hard-hitting joint force still capable of operating at the divisional level across the full spectrum of conflict. It will deliver Armed Forces of which we can all be proud.”
By September, MoD is expected to publish a fully funded and balanced 10-year Equipment Plan. The National Audit Office will conduct an affordability audit of the plan; the first of its kind.
“This commitment to increase defence equipment funding after 2015 will ensure our Armed Forces remain a formidable fighting force on the world stage.”