Defence review sets out £850m property plan
The government has set out plans for an £850m programme of asset sales and efficiency savings in the Ministry of Defence’s Strategic Defence Review.
The long-awaited review of defence spending was unveiled by prime minister David Cameron this afternoon. It is set to cost up to 42,000 jobs, including 25,000 civilian posts, and will result in an 8% cut to the MoD’s budget over the life of this parliament.
Of these savings, £4.3bn are in so-called non-frontline savings, including £500m from selling off assets, such as the Marchwood Sea Mounting Centre.
The review also says rationalisation of the defence estate, including the sale of surplus land and buildings and associated running cost reductions could save up to £350 million a year.
More details on how these savings will be realised are expected next July, as part of a Defence Reform Review, which was announced today and will be chaired by Lord Levene.
A newly-formed Defence Reform Unit will look to introduce a “revised approach” to the way in which the MoD “manages and delivers infrastructure”.
Earlier today, secretary of state for defence Dr Liam Fox halted the procurement of a £12bn Defence Training College at St Athan in Wales.
Speaking following the announcement of the wider security review, Fox said: “The frontline has been protected because Afghanistan is the government’s top priority.
“Tough decisions are required to reconfigure our Armed Forces to confront future threats whilst we also tackle the £38bn deficit that has accumulated in the 12 years since the last defence review.
“The MoD must become as effective and as efficient as possible. Lord Levene will help me deliver radical reform to streamline the department.”
To read the review in full, click here
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