Government could scrap two-year defence budgets

14 April 2008
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15 April 2008 | Jake Kanter

The Ministry of Defence (MoD) confirmed it is "considering" scrapping its two-year defence equipment budgets.

According to a report in the Financial Times (FT), Whitehall officials plan to revert back to the ministry's former one-year budget cycles in an attempt to cut back on defence spending.

An MoD spokesman told Supplymanagement.com the scrapping of the budgets is "something that is being considered" by the government.

The two-year system was designed to bring more stability to defence procurement. It is understood MoD buyers could use the first year to settle budgets and the second to review equipment programmes.

The overhaul could come just four years after the biennial budgets were introduced, reported the FT.

"The department has traditionally planned on an annual basis though we began to experiment with biannual [sic] spending rounds some years ago. It should be noted that there has been a planning round every year bar one for the past 45 years. This is not about funding for one or two years, it is about the regularity of the actual planning process," said the MoD spokesman.



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