UKDS 2007 Introduction

Transcription

1 UKDS 2007 Introduction Welcome to the 2007 edition of UK Defence Statistics, the annual statistical compendium published by the Ministry of Defence. Changes we have introduced this year include the addition of a number of new tables to Chapter 1, containing statistics on employment dependent on MOD expenditure, broken down into equipment and non-equipment expenditure; and MOD equipment expenditure. Although UK Defence Statistics is a National Statistics publication, some tables within it are not National Statistics. They have been included because they nevertheless provide useful contextual or indicative data. There are three groups of tables involved: those provided by organisations other than the UK Government, such as NATO; those from official sources that do not meet all the quality standards for National Statistics; and those which have not yet fulfilled the criteria required to be classed as a National Statistic, such as Table 1.4: Estimated MOD Equipment Expenditure. The tables concerned are clearly marked and have further explanatory notes where necessary. Due to planned forthcoming revisions to a large proportion of the Service personnel data published in UKDS, the first edition of UKDS 2007 is being issued as a web document only. The second edition, incorporating the revisions is planned to be issued shortly afterwards, and will form the basis of the printed book, factsheet and Defence Pocket Cards. DASA also publishes a number of monthly and quarterly statistical bulletins; these are available on our web site or from the DASA contact points listed on the Contact Us page. These contact points can also be used for any feedback that you may have. UKDS 2007 Chapters (Click a link to view the table of contents for each chapter) Chapter 1: Finance Chapter 2: Personnel Chapter 3: Formations, vessels, aircraft and vehicles of the Armed Forces Chapter 4: Aircraft Losses, Casualties and Flying Hours Chapter 5: Search and Rescue Chapter 6: Land holdings and buildings Chapter 7: Northern Ireland and Military Aid to the Civil Community Ministry of Defence Defence Analytical Services Agency A National Statistics Publication Crown Copyright 2007

2 Contact Us Editorial Team: Darren Barton, Ingrid Benayoun, Mark Gardner, Tim Houghton, David Jones, Sean Mattson, Kevin Parry, Tracey Robson, Tina Shattock, Paul Silvester, Suzie Statham September 2007 Defence Analytical Services Agency 3-K-15 Main Building Whitehall London SW1A 2HB Tel: Fax: Web site: If you require information which is not available in this publication, you might like to submit a Request For Information under the Freedom of Information Act 2000 to the Ministry of Defence via the following link: The main contact points within the Defence Analytical Services Agency are: Naval Service Manpower Economic Statistics Army Manpower Health Information RAF Manpower ext 7069 Surveys Quad-Service Manpower (Tri-Service & Civilian) Corporate Business Management Personnel & Equipment Consultancy Corporate Systems Personnel Research & Analysis Web and Development Services Equipment & Personnel Analysis Optimised Support Planning

3 Symbols and Conventions Symbols } categories merged for some years discontinuity in time series ~ fewer than five * not applicable.. not available p provisional r revised rp revised but still provisional e estimate - Zero or rounded to zero Italic figures are used for percentages and other rates, except where otherwise indicated. Rounding Where rounding has been used, totals and sub-totals have been rounded separately and so may not equal the sums of their rounded parts. This also applies to Civilian personnel data expressed in terms of Full-Time Equivalents (FTE). When rounding to the nearest 10, numbers ending in 5 have been rounded to the nearest multiple of 20 to prevent systematic bias. Abbreviations See Glossary.

4 Chapter 1 - Finance Introduction This Chapter provides details of the Department s budget. It also provides information on the impact of defence spending on the wider economy and international comparisons. UKDS 2007 is also available in hard copy format, please contact us for further details. A pdf version of Chapter 1 is also available on the PDF Versions page of this website. Other related sources on the strategy and performance of the Department include: The Government s Expenditure Plans 2007/2008 (Cm 7098, July 2007) The Ministry of Defence's Annual Report & Accounts (HC697, July 2007) HMT Public Expenditure Statistical Analyses 2007 (Cm 7091, April 2007) Some of these documents and other background information can be found at the MOD website: Where possible, every attempt has been made to maintain the consistency of this publication with those above. Where differences do occur, this reflects differences in coverage and/or the availability of more up to date information. This year has seen the inclusion of four new tables: Table 1.4 on MOD Equipment Expenditure has been produced in response to the many requests we have received for this type of information. It is derived directly from data published in the MOD Annual Report & Accounts and includes all military and non-military equipment used by MOD service and civilian personnel. Tables 1.11, 1.11a and 1.11b are produced in response to the increased interest in the devolved administrations and government office regions. They provide estimates of the number of full time jobs, in those regions, supported in industry and commerce by MOD direct expenditure. There are five main sections within this Chapter covering: Departmental Resources Defence Expenditure Outturn, Public Expenditure by Departmental Grouping, Principal Headings of Defence Expenditure Outturn, MOD Equipment Expenditure, MOD Resources by Budgetary Areas, MOD Resources by Departmental Aims & Objectives, MOD Fixed Assets and MOD Research & Development Expenditure Outturn. Industry & Employment MOD spending with UK industry, Estimated UK Employment Dependent on Defence Expenditure and Exports, Estimated UK Regional Direct Employment Dependent on MOD Expenditure and MOD payments on Private Finance Initiatives (PFI) Projects. Trade Imports, Exports and Balance of Payments for Trade in Services. Contracts by type, major equipment projects and main suppliers (including by holding company). International Defence MOD Peacekeeping Costs, NATO Countries Defence Expenditure and their expenditure as a percentage of GDP and the Top World-wide Military Spenders in Main Findings The main findings from Chapter 1 are: Departmental Resources In 2006/07, Defence Spending (Resource DEL plus Capital DEL minus Depreciation) totalled over 34.0 billion. In 2006/07, the outturn against the Departmental Expenditure Limits was 40.7 billion. The Resource DEL accounted for 33.5 billion of the 2006/07 expenditure, whilst the Capital DEL accounted for 7.2 billion. In 2006/07 Defence is estimated to be the fourth highest area of Government expenditure (Resource DEL plus Capital DEL plus AME) behind Work and Pensions, Health and Education and Skills. In 2006/07, the main areas of Resource expenditure were personnel ( 11.2 billion) and depreciation/impairments ( 6.6 billion). In 2006/07, the main area of Capital expenditure was Assets under Construction ( 5.1 billion), which largely consist of major weapons platforms under construction. MOD Equipment Expenditure has increased slightly to 11.7 billion for 2006/07. The total value of MOD Fixed Assets was 99.3 billion as at 31 March The largest category of assets was Single Use Military Equipment ( 34.2 billion) as at 31 March In 2005/06, MOD net expenditure on R&D activity totalled 2.5 billion, comprising 0.6 billion on Research and 1.9 billion on Development. Industry & Employment Trade In 2006/07, the MOD spent some 16.0 billion with UK Industry. The manufacturing industries (section D) attracted slightly over 50% of MOD expenditure with UK Industry. The single industry group attracting most MOD expenditure was Aircraft and Spacecraft (around 10.8% of the total). Estimated employment in UK industry and commerce dependent on MOD expenditure and defence exports has remained constant at around 310,000. Total estimated UK deliveries of exports increased between 2005 and 2006 from 4.5 billion in 2005 to 4.7 billion in (The 2005 figure has been revised from 7.1 billion to 4.5 billion). The UK identified export orders increased by 1.5 billion between 2005 and 2006 to 5.5 billion. Contracts In 2006/07 MOD HQ placed nearly 22,700 contracts with a collective value of around 28.1 billion. The number of contracts placed has decreased by 12% between 2005/06 and 2006/07 whilst the value has increased by nearly 54% ( 9.9 billion) over the same period, highlighting the move towards through-life capability contracts. Please note that most contract payments are not made during the year in which the contract is placed. International Defence In 2006/07, the MOD spent nearly 1.8 billion on conflict prevention worldwide, of which just under 1 billion was as a result of operations in Iraq.

5 Chapter 1 - Finance Resource Accounting & Budgeting Transition of Cash to Resource Accounting & Budgeting (RAB) Up until financial year 1998/99, Government expenditure was accounted for on a cash basis. In April 1999 the introduction of Resource Accounting and Budgeting (RAB) brought in an accruals-based accounting system, although Government departments were still controlled on a cash basis. This transitional accounting regime remained for two financial years. Government expenditure has been accounted for on a resource basis only since 2001/02. The main difference arising from the adoption of RAB is that costs are accounted for as they are incurred (the principle of accruals), rather than when payment is made (the principle of cash). This gives rise to timing differences in accounting between the cash and RAB systems and also to the recognition of depreciation, which expends the cost of an asset over its useful economic life, and the cost of capital charge, equivalent to an interest charge on the net assets held on the Balance Sheet. At the time that RAB was introduced the cost of capital charge was 6% of the net value of assets; although this was reduced to 3.5% in 03/04. Control regime Under Resource Accounting, Government Departments are accountable for their spending against Resource and Capital Departmental Expenditure Limits (DELs). Spending against the Resource DEL includes current items, which are explained in the following two paragraphs. The Capital DEL, whilst part of the overall DEL, reflects investment spending that will appear on the Department's balance sheet and be consumed over a number of years, net of the receipts from sale of assets. Departments are also responsible for Annually Managed Expenditure (AME). This spending is demand led (for example, payment of War Pensions) and therefore cannot be controlled by Departments in the same way. In Stage 1 of RAB, which was introduced at the start of financial year 2001/02, the Resource DEL covered current costs such as in year personnel costs, equipment, maintenance of land and buildings. Non cash costs such as depreciation and the cost of capital charge fell within Annually Managed Expenditure (AME) and were not controlled to the same degree as DELs. This allowed departments an interim period to gain experience of managing the new non-cash costs and to review their holdings of stocks and fixed assets, which impact the non-cash costs, prior to the charge impacting on the more tightly controlled DELs. Stage 2 of RAB was introduced at the start of the financial year 2003/04. This involved the movement of the primary non-cash costs (depreciation and the cost of capital charge) from AME into the Resource DEL, and reduced the cost of capital charge to 3.5% of the net value of assets. The change in definition of the DELs combined with volatile non-cash costs over the Stage 1 period make time series comparisons over the period 2001/ /04 complex. From 2006/07, the MOD has transferred ownership of fixed assets into two TLBs: Defence Estates (DE) for Land and Buildings; and Defence Equipment & Support (DE&S) for Plant and Machinery, Transport, IT and Communications equipment, and Single Use Military Equipment (SUME). Factors affecting Cash to RAB data consistency There are timing differences as to when payments are recognised. The movement of Non-Cash items of expenditure from AME into the Resource DEL from 2003/04 onwards has the 'apparent' effect of inflating the Resource DEL. In financial year 2003/04 the rate of interest used to calculate the cost of capital charge was reduced from 6% to 3.5%. The discount rate for provisions was changed from 3.5% real to 2.2% real with effect from 1 April The discount rate for pension's liabilities was changed from 2.8% real to 1.8% real with effect from 1 April Further information on the introduction of RAB can be found in Chapter 1 of UK Defence Statistics 2002 in the "Resource Accounting & Budgeting" section.

6 Chapter 1 - Finance Departmental Resources This section examines changes in the defence budget over time (Table 1.1). Table 1.2 examines expenditure on defence within the wider public expenditure framework. Table 1.3 gives a breakdown of defence expenditure outturn by main area. Table 1.4, new to UK Defence Statistics this year, presents estimates of MOD equipment expenditure broken out by the main categories of expenditure. Table 1.5 presents the MOD resources broken down by budgetary area. Table 1.6 is included to show the resources consumed against departmental objectives. Following the introduction of RAB, Tables 1.1, 1.3 and 1.5 display the Resource, Capital and AME components separately. Table 1.7 details actual values for MOD Fixed Assets broken down by budgetary area. Table 1.8 details the MOD's annual expenditure on R&D. This is broken down into intramural (within the department) and extramural (outside of the department) expenditure. Main Findings Defence Spending In 2006/07, Defence Spending (Resource DEL plus Capital DEL minus Depreciation) totalled over 34.0 billion. In 2006/07, the outturn against the Departmental Expenditure Limits was 40.7 billion. The Resource DEL accounted for 33.5 billion of the 2006/07 expenditure, whilst the Capital DEL accounted for 7.2 billion. Comparison with other Government Departments In 2006/07 Defence is estimated to be the fourth highest area of Government expenditure (Resource DEL plus Capital DEL plus AME) behind Work and Pensions, Health and Education and Skills. In 2006/07 Health, Education and Skills, and Defence represent around 55% of Departmental Expenditure Limits (57% of Resource DEL and 41% of Capital DEL). Principal Headings of Defence Expenditure Outturn (Resources) In 2006/07, the main areas of Resource expenditure were personnel ( 11.2 billion) and depreciation/impairments ( 6.6 billion). In 2006/07, the main area of Capital expenditure was Assets under Construction ( 5.1 billion), which largely consist of major weapons platforms under construction. Between 2005/06 and 2006/07 expenditure on service personnel has increased by 1.9% whereas civilian personnel expenditure has decreased by 7.1%. MOD Equipment Expenditure MOD Equipment Expenditure has increased slightly to 11.7 billion for 2006/07. MOD Resources by Budgetary Area The largest outturn against the DEL by TLB in 2006/07 was for the Chief of Defence Logistics ( 14.0 billion) and the Defence Procurement Agency ( 7.6 billion). Of the operational TLBs, Commander-in-Chief Land Command had the highest outturn against the DEL in 2006/07 ( 4.4 billion). Fixed Assets The total value of MOD Fixed Assets was 99.3 billion as at 31 March The largest category of assets was Single Use Military Equipment ( 34.2 billion) as at 31 March The value of land & buildings owned by the MOD totalled nearly 18.4 billion as at 31 March Defence Estates hold 99% of the MOD's land and buildings as at 31 March Collectively, the Defence Procurement Agency and the Chief of Defence Logistics are responsible for 98% of the Department's remaining fixed assets as at 31 March The large holdings of Defence Estates and the collective holding of the Defence Procurement Agency and the Chief of Defence Logistics of fixed assets reflect the policy since April 2006 to transfer tangible and intangible assets from Top Level Budgets to Single Balance Sheet Owners. Research & Development In 2005/06, MOD net expenditure on R&D activity totalled 2.5 billion, comprising 0.6 billion on Research and 1.9 billion on Development. Of this 2.5 billion, nearly 90% was spent on R&D work undertaken outside of the department (extramurally).

7 Table 1.1 Defence Expenditure Outturn 1 Chapter 1 - Finance This table shows the changes in Defence expenditure over time, including the period of transition to Stage 1 and 2 of Resource Accounting & Budgeting (RAB). Under Stage 1 RAB, introduced in 2001/02, non-cash costs such as depreciation and cost of capital charge were held under AME, and did not form part of the Resource Departmental Expenditure Limit (DEL). This changed under Stage 2 RAB when non-cash costs moved to the Resource DEL. In order to give a single measure of spending on public services under full resource budgeting, the Defence Spending line is presented as the sum of the resource and capital budgets, net of depreciation and impairments. This reflects the resources required plus the net investment in them, but avoids double counting the writing down of the existing capital stock and the cash outlay on new assets. Control is exercised separately on gross Capital and Resource DEL which replaced Control Totals in 1999/00. The Net Cash Requirement (NCR) is the actual money that MOD requests from the Government in order to fund its activities. The NCR takes account of movements in working capital levels (debtors, creditors, stock) whilst excluding all non-cash costs. The revisions for 2005/06 are due to the Annual Report and Accounts being restated this year. The revisions prior to 2005/06 are due to provisional figures being updated with final figures. This table includes expenditure on Conflict Prevention. Inclusive of non-recoverable VAT at current prices ( million) Outturn Outturn Outturn Outturn Outturn Outturn 1990/ / / / / / / / / / / /07 Defence Spending 2 * * * * * * II * * r r r Departmental Expenditure Limits * * * * II r r r r r Resource DEL 3 * * * * *.. II r r r r r of which: Depreciation/Impairments * * * * * * II * * Cost of Capital Charge * * * * * * II * * r r Capital DEL 4 * * * * *.. II r r r r Annually Managed Expenditure 5 * * * * *.. II Cash r II * * * * * * Net Cash Requirement * * * * *.. II r r r Defence Spending 2 at Constant 2006/07 Prices 6 * * * * * * II * * Source: MOD Directorate of Performance and Analysis 1. The table includes both programme and operational expenditure on conflict prevention. 2. Also referred to as Total DEL, Defence Spending in 2003/04 to 2006/07 is the sum of the Resource DEL, less depreciation and impairments, and Capital DEL. This is consistent with HM Treasury guidance. 3. Resource DEL includes operating cost items such as pay, equipment support costs, fuel and administrative expenditure. From 2003/04 it also includes noncash items such as depreciation and the cost of capital charge on the Department's net assets plus stock and fixed asset write offs. 4. Capital DEL includes expenditure on the purchase of fixed assets (ships, tanks, planes, buildings etc). 5. From 2003/04 Annually Managed Expenditure includes only demand led items such as war pensions. 6. Conversion to constant 2006/07 prices uses the latest available forecast GDP deflator series produced by HM Treasury dated 30 June 2007.

8 Table 1.2 Public Expenditure by Departmental Grouping Chapter 1 - Finance This table (taken from Table 1.5 and Table 1.10 of Public Expenditure Statistical Analyses (PESA) Cm 7091 produced by HMT) examines the expenditure on defence within the wider public expenditure framework. It presents Departmental Expenditure Limits, resource and capital, and Annually Managed Expenditure (AME) by departmental groupings. It is not possible to show figures for all individual departments separately and so departments are grouped broadly on the basis of ministerial responsibilities. A detailed list of departmental groupings can be found in PESA 2007 Appendix B. Annually Managed Expenditure (AME) relates to expenditure outside the DEL but included in Departmental Budgets. This is typically demand led items such as social security benefits, certain pension allowances and tax credits for individuals. Departmental Expenditure Limits (DELs) are firm plans for three years for a specific part of a department's expenditure. In general DEL will cover all running costs and all programme expenditure. DEL includes relevant non-cash items such as depreciation, cost of capital charges and provisions. The large number of revisions are due to changes in accounting practices involving the movement of profit/loss on disposal of assets from resource to capital expenditure and the movement of certain types of impairments from DEL to AME. Current Prices ( billion) Estimated Outturn Outturn Outturn Outturn Outturn Outturn 2001/ / / / / /07 Total Government Resource DEL r r r r Of which: Education and Skills 16.8 r 20.3 r 22.4 r 23.2 r Health 52.8 r 57.1 r 63.6 r 69.1 r Of which: NHS England 52.0 r 55.4 r 61.9 r CLG Local Government Home Office r 12.0 r 12.2 r Defence r Work and Pensions 6.0 r 6.8 r 7.6 r Current Prices ( billion) Estimated Outturn Outturn Outturn Outturn Outturn Outturn 2001/ / / / / /07 Total Government Capital DEL 23.2 r 27.0 r 30.4 r 32.8 r Of which: Education and Skills 2.7 r Health Of which: NHS England CLG Local Government Home Office r Defence r 6.7 r Work and Pensions Current Prices ( billion) Estimated Outturn Outturn Outturn Outturn Outturn Outturn 2001/ / / / / /07 Total Government AME r r r r Of which: Education and Skills 8.6 r 9.0 r 8.4 r 8.1 r Health r 6.3 r 6.7 r Of which: NHS England 0.1 r 0.1 r 0.1 r 0.3 r CLG Local Government Home Office Defence 4 * * Work and Pensions 95.6 r Total Government DEL (RDEL + CDEL) r r r r Total Government AME r r r r Total Government Spend (RDEL + CDEL + AME) r r r Source: HMT Public Expenditure Statistical Analyses Cm 7091 (Table 1.5 & Table 1.10) 1. The figures presented in this table for 2001/02 and 2002/03 are different from the ones shown in Tables 1.1, 1.3 & 1.5 as the PESA figures for these years have been recast by HM Treasury on the Stage 2 RAB definition of DEL and AME whereas the MOD reported the accounts on Stage 1 definitions until 2003/ CLG Local Government is a new category but it is comparable with the "Local Government" category referred to in previous editions of UKDS. This new category is due to the creation of the "Department for Communities and Local Government" established on 5 April For 2003/04 the Defence figure includes the supplementary estimate for asset revaluation. 4. The figures for Defence AME from onwards have been adjusted to align with the data contained in Tables 1.1, 1.3 and 1.5 which excludes contributions to the Armed Forces Pensions Scheme.

9 Chapter 1 - Finance Table 1.3 Principal Headings of Defence Expenditure Outturn (Resource basis) This table provides a breakdown of defence outturn in terms of resources consumed. This is distributed between the main personnel, fixed assets and other expenditure groups. These groupings differ from those used under cash accounting and are not directly comparable. Prior to 2005/06 the Departmental Resource Accounts (DRAc) were published after UKDS. The revisions for years up to 2005/06 are due to updating the previous provisional figures published in UKDS with the final figures published in the corresponding DRAc. The revisions for 2005/06 are due to the Annual Report and Accounts being restated this year. The revisions prior to 2005/06 are due to provisional figures being updated with final figures. This table includes expenditure on conflict prevention (RFR2). Inclusive of non-recoverable VAT at current prices ( million) Outturn Outturn Outturn Outturn Outturn Outturn 2001/ / / / / /07 Defence Spending * * r r r Departmental Expenditure Limits r r r r r Resource DEL r r r r r of which: Expenditure on Personnel r of which: for Armed Forces for Civilians Depreciation/Impairments * * Cost of Capital * * r r Equipment Support r Stock Consumption Property Management r Movements r 729 r 774 Accommodation & Utilities r r 786 Professional Fees Fuel Hospitality & Entertainment PFI Service Charges * * * * IT & Communications Other Costs r r r r r Capital DEL r r r r of which: Expenditure on Fixed Asset Categories Intangible Assets r r Land and Buildings 54 r 96 r 54 r 389 r Single Use Military Equipment r 42 r 90 r 434 r Plant, Machinery & Vehicles 96 r 45 r 78 r IT & Communications Equipment 87 r 96 r 183 r Assets Under Construction r r r Transport 12 * * * Capital Spares r * * * Capital Loan Repayment r Other Costs r r r AME of which: War Pensions r Other r Source: MOD Directorate of Performance and Analysis 1. Internal and contracted out costs for equipment repair and maintenance. 2. Consumption of armament, medical, dental, veterinary, oil, clothing, and general stores. 3. Estate and facilities management services and costs for buildings' maintenance. 4. Cost of transportation of freight and personnel. 5. Charges include rent, rates, gas, electricity, water and sewerage costs. 6. Fees, such as legal costs, paid to professional organisations. 7. Relates to fuel consumption by military vehicles, ships and aircraft. 8. Other costs include stock and fixed assets written off, research & expensed development and rentals paid under operating leases. 9. Intangible Assets comprise the development costs of major equipment projects and Intellectual Property Rights. 10. Prior to 2004/05, this category was called Fighting Equipment. This category contains assets which only have a military use, such as tanks and fighter aircrafts. Dual use items i.e. those that also have a civilian use are recorded under the other categories. 11. Assets Under Construction (AUC) largely consist of major weapons platforms under construction in the Defence Procurement Agency, and a smaller element of Buildings under construction. Once construction is complete, those platforms will transfer to the relevant Top Level Budget holder as Fighting Equipment on their Balance Sheets. 12. From 2004/05 Transport has been recorded as a separate category and Capital Spares has been removed as a category, with the costs previously recorded here being incorporated into Transport or SUME. 13. Other costs include, amongst other items of Capital DEL, capital income. 14. For 2001/02 and 2002/03 AME included depreciation and the cost of capital charge. Under Stage 2 of RAB, this category now contains only demand led payments, such as cash release and cost of capital credit on nuclear provisions and QinetiQ loan repayments.

10 Chapter 1 - Finance Table 1.4 Estimated MOD Equipment Expenditure 1 This table presents estimates of MOD equipment expenditure broken out by the main categories of expenditure. Aggregate MOD Equipment expenditure here has been used to indicate expenditure on acquisition, maintenance, repair and update of items such as plant, machinery and vehicles and fighting equipment plus associated Research & Development, and expenditure on administrative computers. It is therefore a wider definition to that used by the MOD Equipment and Equipment Support Plans, and covers both military and non-military equipment used by MOD service and civilian personnel. The data are derived directly from the MOD Annual Report & Accounts. This table is outside the scope of National Statistics because it is still under review to ensure it meets all of the high professional quality assurance standards set out in the National Statistics Code of Practice. Intentions are to label the table a National Statistic from next year. Inclusive of non-recoverable VAT at current prices ( million) 2003/ / / /07 Estimated MOD Equipment Expenditure Of which: Capital Expenditure on Equipment 2 Equipment Support 3 Research & Development Source: MOD Annual Report & Accounts 1. These estimates are not directly comparable to the old cash equipment procurement time series last published in 2000/01(UKDS 2002) due to the exclusion of in year stock purchases. It is not possible to identify that element of stock purchases which wholly relates to MOD equipment expenditure. 2. Capital expenditure on Equipment includes those Assets Under Construction (AUC) relating to Single Use Military Equipment (SUME) only plus in year purchases on IT and communications equipment, vehicles, single use military equipment and plant and machinery. AUC SUME largely consist of major weapons platforms under construction in the Defence Equipment & Support (DE&S) organisation (formerly the Defence Procurement Agency and Defence Logistics Organisation), and excludes that element of Buildings under construction and Land which would fall outside the wider definition of MOD equipment procurement detailed in the commentary above. Once construction is complete, those platforms will transfer to the relevant Single Balance Sheets Owners (SBSO) as Single Use Military Equipment (SUME) on their Balance Sheets. 3. Internal and contracted out costs for equipment repair and maintenance. 4. The data are derived from an annual survey of MOD R&D expenditure conducted by DASA and information from MOD accounting systems relating to expenditure on Additions to Intangible Assets and Research & Expensed Development. Development activity associated with acquiring assets is the most significant part of this expenditure.

11 Table 1.5 MOD Resources by Budgetary Areas 1 Chapter 1 - Finance This table provides a detailed breakdown of resource consumption by budgetary area for 2001/02 through to 2006/07. Under Spending Review 2002 rules, figures for financial years 2003/04 onward include non-cash items such as depreciation and cost of capital charge that previously were part of Annually Managed Expenditure (AME). This means that the figures reported the years 2001/02, 2002/03 and 2003/04 onwards are not directly comparable. The revisions for 2005/06 are due to the Annual Report and Accounts being restated this year. The revisions prior to 2005/06 are due to provisional figures being updated with final figures. This table includes expenditure on Conflict Prevention (RFR2). Inclusive of non-recoverable VAT at current prices ( million) Outturn Outturn Outturn Outturn Outturn Outturn 2001/ / / / / /07 Departmental Expenditure Limits (DEL) r r r r r Request for Resources 1: PROVISION OF DEFENCE CAPABILITY r r r r r Resource DEL r r r r r of which: Commander-in-Chief Fleet General Officer Commanding (Northern Ireland) Commander-in-Chief Land Command Air Officer Commanding-in-Chief RAF Strike Command Chief of Joint Operations Chief Defence Logistics r nd Sea Lord/Commander-in-Chief Naval Home Command * Adjutant General (Personnel and Training Command) r r r Air Officer Commanding-in-Chief RAF Personnel and Training Command Central r r r Defence Estates 4 * * ll * * Defence Procurement Agency r Science Innovation Technology Not Allocated * Capital DEL r r r r of which: Commander-in-Chief Fleet General Officer Commanding (Northern Ireland) Commander-in-Chief Land Command r Air Officer Commanding-in-Chief RAF Strike Command Chief of Joint Operations Chief Defence Logistics nd Sea Lord/Commander-in-chief Naval Home Command * Adjutant General (Personnel and Training Command) r Air Officer Commanding-in-Chief RAF Personnel and Training Command Central r - 44 r 44

12 Defence Estates 4 * * ll * * Defence Procurement Agency Science Innovation Technology * * * * * * Not Allocated * Request for Resources 2: CONFLICT PREVENTION r (not broken down by Top Level Budget) Resource DEL r r Capital DEL Annually Managed Expenditure (AME) Request for Resources 1: PROVISION OF DEFENCE CAPABILITY Commander-in-Chief Fleet * 8 * General Officer Commanding (Northern Ireland) * * * * Commander-in-Chief Land Command * * * * Air Officer Commanding-in-Chief RAF Strike Command * * * * Chief of Joint Operations Chief Defence Logistics nd Sea Lord/Commander-in-Chief Naval Home Command * * * * Adjutant General (Personnel and Training Command) * * * * Air Officer Commanding-in-Chief RAF Personnel and Training Command * 2 * * Central * Defence Estates 4 * * ll * * * * Defence Procurement Agency Science Innovation Technology * * * * Not Allocated * * * * * 13 Request for Resources 2: CONFLICT PREVENTION * * * * Request for Resources 3: WAR PENSIONS & ALLOWANCES, etc r r Source: MOD Directorate of Performance and Analysis 1. Full TLB definitions are available in the Glossary page of this website. 2. The Resource and Capital DEL Total figures are taken from DRAc 2001/02 and 2002/03 which are final figures. The TLB breakdowns are provisional only. The remaining balance has been assigned to the "not allocated" category where expenditure had not been allocated to a particular TLB at that point in time. 3. C-in-C Fleet TLB includes the former 2nd Sea Lord/C-in-C Naval Home Command TLB from 2006/ The 'Defence Estates' TLB was formed on 1 April This was formerly part of 'Central' TLB. There is no historic data for this new TLB. 5. AME for 2003/04 onwards includes accounting charges relating to nuclear decommissioning, loan interest and cost of capital charges for self financing public corporations. The negative AME figures arise from the cash release from the nuclear decommissioning provision and the cost of capital charge calculated on a net balance sheet liability (as opposed to net assets).

13 Chapter 1 - Finance Table 1.6 MOD Resources by Departmental Aims & Objectives The MOD's aim is to "deliver security for the people of the United Kingdom and the Overseas Territories by defending them, including against terrorism, and act as a force for good by strengthening international peace and security". This aim and three supporting objectives are set out in the MOD's Public Service Agreement for the years 2005 to The costs of meeting these objectives, and their enabling outputs set out below, are reported in the MOD Annual Report and Accounts. The outputs are defined more fully in the Notes to the Accounts. Figures are net of receipts and are not comparable with those presented in Tables 1.1, 1.3 and 1.5, for example, due to the treatment of MOD Trading Funds. The Total Defence Output Cost is consistent with the net operating cost figure (excluding the payments of War Pensions and Benefits) in the statement of Operating Costs by Departmental Aim and Objectives of the MOD Annual Report & Accounts. The sum of Resource DEL and "Other AME", which may be derived from Table 1.5, closely aligns with the total of these net operating costs. The figures do not exactly match because certain categories of MOD's interest payments and grants and other non budgetary costs that are specified by HM Treasury to be outside the scope of the MOD's Departmental Expenditure Limits (DEL) and Annually Managed Expenditure (AME). Operating costs include resource charges for capital assets through depreciation and cost of capital charges. Inclusive of non-recoverable VAT at current prices ( million) Outturn Outturn Outturn Outturn Outturn 2002/ / / / /07 4 Total Defence Output Cost r OBJECTIVE 1: Achieving success in the tasks we undertake Operations Other Military Tasks Contributing to the Community Helping to Build a Safer World OBJECTIVE 2: Being ready to respond to the tasks that might arise Royal Navy r Aircraft Carriers Frigates & Destroyers Smaller Warships Amphibious Ships Strategic Sealift Fleet Support Ships Survey & Other Vessels Naval Aircraft r Submarines Royal Marines Army r Field Units Other Units Royal Air Force r Strike/Attack and Offensive Support Aircraft Defensive and Surveillance Aircraft Reconnaissance and Maritime Patrol Aircraft Tankers, Transport and Communications Aircraft Future Capability Other Aircraft and RAF Units r Centre Grouping Joint and Multinational Operations Centrally Managed Military Support Maintenance of War Reserve Stocks OBJECTIVE 3: Building for the future Research & Expensed Development Equipment Programme Source: MOD Annual Report & Accounts 1. The costs of delivering the military capability to meet Objective 2 are analysed among force elements of the front line commands, including joint force units where these have been established, and a small number of centrally managed military support activities. In addition to the direct operating costs of the front line units, they include the attributed costs of logistical and personnel support. In common with all Objectives, these also contain a share of the costs of advising ministers and accountability to Parliament, and apportioned overheads for head office functions and centrally provided services. 2. The relatively high Total Defence Output Cost figure for 2002/03 reflects: a one-off increase in impairments and depreciation of 4.0 billion as a result of the Quinquennial review of fixed assets; additional nuclear decommissioning costs of 1.1 billion; and conflict prevention costs of 0.5 billion due to the war in Iraq. 3. The increased Total Defence Output Cost figure for 2005/06 reflects: an increased cost incurred following the change in discount rate, from 3.5% to 2.2%, applied to the Department's provisions for nuclear decommissioning of 1.1 billion; and movements in other operating costs, including staff, impairments, and depreciation as a result of the Quinquennial review of fixed assets of 1.4 billion offset by receipts from the sale of QinetiQ shares. 4. With effect from April 2006, intangible and tangible fixed assets were transferred from Top Level Budgets (TLBs) to Single Balance Sheet Owners (SBSOs). The related operating costs (e.g. depreciation and cost of capital charge) have been apportioned to outputs by the SBSOs using the percentage of costs attributed to the Management Grouping in 2005/06 as a basis for the apportionment. Where Front Line TLBs had previously allocated some asset costs directly to final outputs, the methodology used in 2006/07 has resulted in some variances in costs attributed to final outputs from those reported in 2005/06. Restructuring within RAF Strike Command resulted in a more accurate alignment of costs to outputs.

14 Table 1.7 MOD Fixed Assets: 2006/07 1 Chapter 1 - Finance This table gives a detailed breakdown of the value of the MOD's Fixed Assets by category and budgetary area. The MOD is one of the largest owners of fixed assets in the United Kingdom. The stewardship and efficient management of the Department's assets are the responsibility of Top Level Budget (TLB) Holders. MOD Fixed Assets are formally revalued on a five-yearly basis, but are uplifted annually using indexation. This table has been modified to reflect revised asset categories. Fighting Equipment has been replaced by Single Use Military Equipment (SUME), Plant, Machinery and Vehicles has been replaced with two categories; Plant and Machinery and Transport, and the category of capital spares has been removed and incorporated into SUME and Transport. The values contained in the table are at 31 March The valuation method complies with financial reporting standards with values being on an existing use basis and not market value at disposal. Overseas estates for which the Crown holds no legal title, but which is used for garrison and training purposes by British Forces is included in the MOD Fixed Assets Register. UK bases occupied by visiting forces are also included. Tangible Fixed Assets ( million) Land & Plant & Transport IT & SUME 4 AUC 5 AUC 5 Intangible Invest- Total Buildings Machinery Comms SUME Other Assets ments Assets Equipment Top Level Budget 2 Total Commander-in-Chief Fleet General Officer Commanding (Northern Ireland) Commander-in-Chief Land Command Air Officer C-in-C RAF Strike Command Chief of Joint Operations Chief Defence Logistics Adjutant General (Personnel & Training Command) Air Officer C-in-C RAF Personnel & Training Command Central Defence Estates Defence Procurement Agency Source: MOD Directorate of Performance and Analysis 1. Figures provided as at 31 March 2007 are taken from MOD Fixed Assets Register. From 2006/07 the creation of Single Balance Sheet Owners has meant that most classes' assets are now accounted for by one TLB. This accounts for changes since UKDS C-in-C refers to "Commander-in-Chief" or "Commanding-in-Chief". 3. C-in-C Fleet TLB now includes the former 2nd Sea Lord/C-in-C Naval Home Command TLB. 4. SUME refers to Single Use Military Equipment. 5. AUC refers to Assets Under Construction.

15 Chapter 1 - Finance Table 1.8 MOD Research & Development Expenditure Outturn This table details the MOD's annual expenditure on Research and Development (R&D) activity. Expenditure is broken down into intramural (i.e. R&D activity undertaken within the Department) and extramural (i.e. R&D activity undertaken outside of the Department). The data included in this table are derived from an annual survey of MOD R&D expenditure conducted by DASA and information from MOD accounting systems. DASA seek to classify R&D activity within the Organisation for Economic Co-operation & Development's Frascati Guidelines which align to National Accounts definitions. Following a National Statistics Quality Review conducted during 2002/03, the MOD's R&D statistics were revised for the years 1996/97 to 2000/01. These changes are described in Defence Statistics Bulletin No. 6. Changes made before this date are outlined in Defence Statistics Bulletin Nos.1 & 2, and are described in previous editions of UK Defence Statistics. The marked shift from intramural to extramural expenditure in 2001/02 is a result of the disestablishment of the Defence Evaluation and Research Agency on 1 July Inclusive of non-recoverable VAT at current prices ( million) Research & Development 1990/ / / / / / / /06 Total Gross Expenditure on R&D Of which: Intramural Extramural Receipts Of which used: Intramurally Extramurally Total Net Expenditure on R&D Inclusive of non-recoverable VAT at current prices ( million) Research 1990/ / / / / / / /06 Total Gross Expenditure on Research Of which: Intramural Extramural Receipts Of which used: Intramurally Extramurally Total Net Expenditure on Research Inclusive of non-recoverable VAT at current prices ( million) Development 1990/ / / / / / / /06 Total Gross Expenditure on Development Of which: Intramural Extramural Receipts Of which used: Intramurally Extramurally Total Net Expenditure on Development Source: DASA (Economic Statistics) 1. From 2000/01 the Departmental Resource Accounts (DRAc) follow Statement of Standard Accounting Practice 13, "Accounting for Research and Development." From 2000/01 the figures are calculated on a resource basis, and are consistent with the aggregate of Research & Expensed Development plus Additions to Intangible Assets. This table therefore comprises elements from both the Operating Cost Statement and the Balance Sheet in the DRAc. 2. On 1 July 2001 DERA was split into two organisations: the Defence Science & Technology Laboratory (Dstl) (about a quarter of DERA) staying as a Trading Fund within MOD, and QinetiQ, the remainder, becoming a private (extramural) company. 3. Receipts are monies received by MOD & its Trading Funds for expenditure on R&D, for example from other government departments & private industry. This money is not necessarily spent on defence-related R&D.

16 Chapter 1 - Finance Industry & Employment This section provides data on the impact of MOD's spending on equipment and services in the UK. Table 1.9 details the estimated amount of money that the MOD spent with UK industry broken down by industrial group from the cash accounts. Table 1.9a provides data for 2002/03 onwards against slightly different industry groupings due to the introduction of Resource Accounting and Budgeting. These numbers have been derived from administrative systems which use Resource Account Codes. The industrial groupings are based on the UK Standard Industrial Classification (SIC) 1992 maintained by the Office for National Statistics (ONS). Table 1.10 provides estimates of UK employment dependent on MOD expenditure and defence exports. Direct Regional Expenditure This year, significant progress has been made by DASA to improve the quality of the underlying data and methods used in the employment estimates. This has enabled us to reinstate regional employment estimates for MOD direct expenditure (i.e. both equipment and non-equipment spending). These developments are outlined in DASA Defence Statistics Bulletin No.7 published earlier this year on our website ( Tables 1.11, 1.11a & 1.11b provide estimates of the number of direct full time jobs in the Government Office Regions of England, Scotland, Wales, Northern Ireland and the UK as a whole, supported in industry and commerce by MOD direct expenditure. Table 1.12 details MOD's payments on PFI projects. Indirect Regional Expenditure The methods are more complex for the indirect regional employment statistics (those people employed in the supply chain). Almost no data on subcontracting activity is available to us. For the UK numbers we use the Leontief Inverse matrix (explained in Defence Statistics Bulletin 5) to model the indirect effect of MOD spend on the UK economy. No such tool currently exists for industries regionally. We are exploring the feasibility of various methods to help us model the UK defence supply chain on a regional basis in order to produce estimates for indirect regional expenditure. Given the broad arching assumptions in the approaches, it is unlikely that the figures would ever reach the data quality standards required for publication as National Statistics. Progress on this and the methods we propose to use were explained in the Defence Statistics Bulletin No. 7. Main Findings Expenditure by Industry Group In 2005/06, the MOD spent some 16.0 billion with UK Industry. The 'manufacturing' industries (section D) attracted around 50% of MOD expenditure with UK Industry. The single industry group attracting most MOD expenditure was Aircraft and Spacecraft (around 11% of the total). Defence Related Employment Estimated employment in UK industry and commerce dependent on MOD expenditure and defence exports remained constant at around 310,000. Regional employment directly dependent on MOD expenditure is concentrated in the South East (40,000 jobs) and the South West (37,000 jobs). Scotland, Wales and Northern Ireland account for just 13,000 jobs (9%). MOD PFI Projects The PFI projects against which the highest payments were made in 2006/07 were Allenby/Connaught, Attack Helicopters Training - Apache Simulator Training, Defence Fixed Telecommunications Service (DFTS), Main Building Redevelopment (MBR), Skynet 5 and the Tri-Service White Fleet.

17 Chapter 1 - Finance Table 1.9 Estimated Defence Expenditure Outturn in the UK: Breakdown by Industry Group This table, which has been prepared from the MOD's Cash Ledger, details the amount of money the MOD spent with UK industry broken down by industrial group. Figures therefore, exclude 'internal' MOD expenditure such as pay and allowances. Industrial groupings are derived from the Standard Industrial Classification (SIC) guidelines maintained by the Office for National Statistics. From 1996/97 onwards, figures are based on Standard Industrial Classification SIC(92). Prior to this, figures are based on SIC(80). The creation of QinetiQ PLC from part of the MOD's Defence Evaluation and Research Agency (DERA) in July 2001 provides a discontinuity in 2001/02 compared to earlier years. The figures have been rounded to the nearest 10M. Differences between the totals and sums of the components are caused by this rounding. This table has been reproduced again this year to provide continuity with the time series data presented in Table 1.9a. VAT exclusive at current prices ( million) SIC(92) Group 1990/ / / / / / /02 Total Solid Fuels Petroleum Products Gas, Electricity and Water Supply Metals 27,28 * Chemicals 24 * Other Mechanical and Marine Engineering Weapons & Ammunition Data Processing Equipment Other Electrical Engineering Electronics & Precision Instruments 32, Motor Vehicles and Parts 34, 35.2, 35.4, Shipbuilding and Repairing Aircraft and Spacecraft Food Textiles, Leather Goods and Clothing 17,18, Office Furniture 36.1 * Stationery 21,22 * Construction 45 * Postage 64.1 * Telecommunications 64.2 * Other Production Industries 1 nes Other Industries and Services 2 nes Source: DASA (Economic Statistics) 1. This category includes expenditure on equipment in other manufacturing industries, as well as the business and administration, education and training, and operational support sectors. 2. This category includes expenditure on services in the business and administration, education and training, and operational support sectors. It also includes expenditure on road and rail transport and freight. 3. Not elsewhere specified.

18 Chapter 1 - Finance Table 1.9a Estimated Defence Expenditure Outturn in the UK: Breakdown by Industry Group This table, which has been prepared from MOD administrative systems introduced under Resource Accounting and Budgeting (RAB), estimates the amount of money the MOD spends directly with UK industry broken down by industrial group. The RAB breakdowns do not permit the analysis that was undertaken previously. The break in series has, however, permitted the table to show all the sections of the economy that are represented in the Standard Industrial Classification (SIC). Figures exclude 'internal' MOD expenditure such as pay and allowances. Industrial groupings are based on the SIC 1992 guidelines maintained by the Office for National Statistics. The figures have been rounded to the nearest 10M. Differences between the totals and sums of the components are caused by this rounding. SIC(92) Section 2002/03 1 VAT exclusive at current prices ( million) 2003/ / /06 Total A, B, C Agriculture, Fishing and Mining D Manufacturing, excluding those industries itemised below r Weapons & Ammunition Data Processing Equipment Other Electrical Engineering Electronics Precision Instruments , 35.2, 35.4, 35.5 Motor Vehicles & Parts Shipbuilding & Repairing Aircraft & Spacecraft E Electricity, Gas & Water F Construction G Wholesale, Retail & Repair of Motor Vehicles H, I Hotels, Restaurants & Transportation, excluding the industry itemised below Telecommunications J, K, L, M, N, O, P Financial Services, Business Activities, Education, Health, & Other Service Activities excluding those industries itemised below r , 71 Real Estate & Renting Computer Services Source: DASA (Economic Statistics) 1. The break in series between 2002/03 and 2003/04 reflects the fact that for 2002/03 the Defence Bills Agency data was still based on Internal Account Codes (used under the old cash system), and was migrated to Resource Accounting Codes one year later than the accounting systems, on 1 April Figures for 2004/05 have been revised mainly due to the reclassification of some contracts from manufacturing to service activities. 3. Includes MOD payments to AWE Management Ltd, who manage the Atomic Weapons Establishment on behalf of the MOD under a Governmentowned/contractor-operated arrangement. 4. The quality of data available for the service industries is insufficient to identify these SICs separately.

19 Chapter 1 - Finance Table 1.10 Estimated UK Employment Dependent on MOD Expenditure and Defence Exports This table provides estimates of the number of full-time jobs supported in the UK by MOD expenditure and defence exports. The methodology is described in Defence Statistics Bulletin No.5, available on the DASA web site. "Direct" employment is that generated in those companies providing the product or service directly to MOD, or that within the exporter. "Indirect" employment is that provided through "the supply chain" by sub-contractors or suppliers to the "direct" contractor. The figures reflect average full time equivalent in year. The figures exclude MOD service and civilian personnel, and are shown rounded to the nearest five thousand. Differences between the totals and sums of the components are caused by this rounding. From 2002/03 onwards the numbers have been calculated using expenditure data derived from the MOD administrative systems that were introduced with Resource Accounting and Budgeting. The resulting changes to the methodology are described in Addendum No 5a to Defence Statistics Bulletin. This table is outside the scope of National Statistics because the Defence exports data do not meet all of the high professional quality assurance standards set out in the National Statistics Code of Practice. Thousands 1997/ / / / / / /06 Total Employment Direct Indirect Employment from MOD Expenditure Direct Indirect Split by: Equipment Expenditure Direct Indirect Non-Equipment Expenditure Direct Indirect Employment from Defence Exports r 50 Direct Indirect Source: DASA (Economic Statistics) 1. The estimates of UK employment dependent on defence exports are based on estimates of those exports which are not of sufficient quality to be badged as National Statistics. 2. Figures calculated for "exports" are not derived directly from the financial figures for exports contained in Table Adjustments are made for international collaborations, electronics and vehicle exports. Please refer to Defence Statistics Bulletin No.5 for further discussion. In aggregate the adjustments to the total export figures were 114 million in 1997, 859 million in 1998, 499 million in 1999, 49 million in 2000, million in 2001, 74 million in 2002, 48 million in 2003, 115 million in 2004 and million in In July 2001, part of the Defence Evaluation & Research Agency (DERA) was established as QinetiQ plc. These employees are now included in the "direct" employment total. 4. The increase in employment dependent on defence exports in 2004/05 reflects an increase in defence export sales, orders and deliveries identified predominantly in the aerospace, electronics and shipbuilding sectors during The methodology used to derive the defence export figures used to produce the employment estimates is described in Defence Statistics Bulletin No.5, available on the DASA web site.

20 Chapter 1 - Finance Table 1.11 Estimated UK Regional Direct Employment Dependent on MOD Expenditure 1,2 Tables 1.11, 1.11a & 1.11b provide estimates of the number of direct full time jobs in the Government Office Regions of England, Scotland, Wales, Northern Ireland and the UK as a whole, supported in industry and commerce by MOD direct expenditure. Table 1.11a provides estimates of the number of direct jobs in UK industry and commerce dependent on direct MOD equipment expenditure. Table 1.11b provides estimates of the number of direct jobs in UK industry and commerce dependent on direct MOD non equipment expenditure. Direct employment is that generated in those companies providing the product or service to the MOD. Equipment expenditure covers those sums spent on producing equipment for the armed forces and goods for MOD, including expenditure on Research and Development, manufacture, and equipment support. Non equipment includes expenditure on items such as utilities (gas, water, and electricity) and maintaining the defence estate. The methodology is described in DASA Defence Statistics Bulletin No.7, available on the DASA website. The figures exclude MOD service and civilian personnel. Total direct UK employment has been rounded to the nearest 5000 to align to the national employment estimates in Table 1.10, whilst individual regional totals are shown to the nearest 1000 full time equivalent. Differences between the totals and sums of the components are caused by this rounding. Regional percentage breakdowns are based on the unrounded UK figures. The data in this table are outside the scope of National Statistics because they do not meet all of the high professional quality assurance standards set out in the National Statistics Code of Practice. Thousands Percentage 2002/ / / / / / / /06 United Kingdom % 100% 100% 100% England % 89% 91% 91% East % 9% 7% 8% East Midlands % 2% 2% 3% London % 7% 10% 6% North East % 2% 1% 2% North West % 12% 11% 11% South East % 26% 27% 28% South West % 25% 26% 26% West Midlands % 4% 4% 4% Yorks & Humb % 3% 2% 3% Scotland % 7% 7% 6% Wales % 2% 1% 1% Northern Ireland % 1% 1% 1% Source: DASA(Economic Statistics) 1. Using the average UK turnover per full time equivalent may neglect potential differences in regional turnover per head. However, regional turnover per head at the level of SIC used in the employment estimates is not currently available from the ONS: the employment estimates for a number of industries/ products use 3 digit SIC level data, and the ONS only publish (limited) regional data derived from the Annual Business Inquiry (ABI) data at 2 digit level. The impact of using national employment averages is not likely to produce a significantly different output than if regional employment averages were available. 2. Estimates have been provided from onwards to reflect the available expenditure data derived from the MOD adminstrative systems that were introduced with Resource Accounting and Budgeting.

21 Chapter 1 - Finance Table 1.11a Estimated UK Regional Direct Employment Dependent on MOD Equipment Expenditure 1,2 Tables 1.11, 1.11a & 1.11b provide estimates of the number of direct full time jobs in the Government Office Regions of England, Scotland, Wales, Northern Ireland and the UK as a whole, supported in industry and commerce by MOD direct expenditure. Table 1.11a provides estimates of the number of direct jobs in UK industry and commerce dependent on direct MOD equipment expenditure. Table 1.11b provides estimates of the number of direct jobs in UK industry and commerce dependent on direct MOD non equipment expenditure. Direct employment is that generated in those companies providing the product or service to the MOD. Equipment expenditure covers those sums spent on producing equipment for the armed forces and goods for MOD, including expenditure on Research and Development, manufacture, and equipment support. Non equipment includes expenditure on items such as utilities (gas, water, and electricity) and maintaining the defence estate. The methodology is described in DASA Defence Statistics Bulletin No.7, available on the DASA website. The figures exclude MOD service and civilian personnel. Total direct UK employment has been rounded to the nearest 5000 to align to the national employment estimates in Table 1.10, whilst individual regional totals are shown to the nearest 1000 full time equivalent. Differences between the totals and sums of the components are caused by this rounding. Regional percentage breakdowns are based on the unrounded UK figures. The data in this table are outside the scope of National Statistics because they do not meet all of the high professional quality assurance standards set out in the National Statistics Code of Practice. Thousands Percentage 2002/ / / / / / / /06 United Kingdom % 100% 100% 100% England % 89% 90% 93% East % 8% 7% 7% East Midlands % 2% 2% 3% London % 2% 4% 3% North East % 4% 2% 2% North West % 18% 17% 16% South East % 24% 26% 29% South West % 24% 26% 26% West Midlands % 5% 4% 4% Yorks & Humb % 1% 1% 1% Scotland % 8% 7% 6% Wales % 1% 1% 1% Northern Ireland % 1% 1% 1% Source: DASA(Economic Statistics) 1. Using the average UK turnover per full time equivalent may neglect potential differences in regional turnover per head. However, regional turnover per head at the level of SIC used in the employment estimates is not currently available from the ONS: the employment estimates for a number of industries/ products use 3 digit SIC level data, and the ONS only publish (limited) regional data derived from the Annual Business Inquiry (ABI) data at 2 digit level. The impact of using national employment averages is not likely to produce a significantly different output than if regional employment averages were available. 2. Estimates have been provided from onwards to reflect the available expenditure data derived from the MOD adminstrative systems that were introduced with Resource Accounting and Budgeting.

22 Chapter 1 - Finance Table 1.11b Estimated UK Regional Direct Employment Dependent on MOD Non Equipment Expenditure 1,2 Tables 1.11, 1.11a & 1.11b provide estimates of the number of direct full time jobs in the Government Office Regions of England, Scotland, Wales, Northern Ireland and the UK as a whole, supported in industry and commerce by MOD direct expenditure. Table 1.11a provides estimates of the number of direct jobs in UK industry and commerce dependent on direct MOD equipment expenditure. Table 1.11b provides estimates of the number of direct jobs in UK industry and commerce dependent on direct MOD non equipment expenditure. Direct employment is that generated in those companies providing the product or service to the MOD. Equipment expenditure covers those sums spent on producing equipment for the armed forces and goods for MOD, including expenditure on Research and Development, manufacture, and equipment support. Non equipment includes expenditure on items such as utilities (gas, water, and electricity) and maintaining the defence estate. The methodology is described in DASA Defence Statistics Bulletin No.7, available on the DASA website. The figures exclude MOD service and civilian personnel. Total direct UK employment has been rounded to the nearest 5000 to align to the national employment estimates in Table 1.10, whilst individual regional totals are shown to the nearest 1000 full time equivalent. Differences between the totals and sums of the components are caused by this rounding. Regional percentage breakdowns are based on the unrounded UK figures. The data in this table are outside the scope of National Statistics because they do not meet all of the high professional quality assurance standards set out in the National Statistics Code of Practice. Thousands Percentage 2002/ / / / / / / /06 United Kingdom % 100% 100% 100% England % 88% 93% 89% East % 9% 7% 10% East Midlands % 2% 2% 4% London % 14% 18% 11% North East % 0% 0% 1% North West % 3% 2% 2% South East % 28% 29% 28% South West % 26% 25% 26% West Midlands % 3% 4% 3% Yorks & Humb % 5% 4% 5% Scotland % 5% 5% 7% Wales % 3% 2% 2% Northern Ireland % 2% 2% 2% Source: DASA(Economic Statistics) 1. Using the average UK turnover per full time equivalent may neglect potential differences in regional turnover per head. However, regional turnover per head at the level of SIC used in the employment estimates is not currently available from the ONS: the employment estimates for a number of industries/ products use 3 digit SIC level data, and the ONS only publish (limited) regional data derived from the Annual Business Inquiry (ABI) data at 2 digit level. The impact of using national employment averages is not likely to produce a significantly different output than if regional employment averages were available. 2. Estimates have been provided from onwards to reflect the available expenditure data derived from the MOD adminstrative systems that were introduced with Resource Accounting and Budgeting.

23 Chapter 1 - Finance Table 1.12 MOD Payments on Private Finance Initiative (PFI) Projects: 2006/ This table provides a listing of PFI commitments and payments made to each project by MOD during the financial year 2006/07. Values represent payments made in year against contracts relating to the project and not the capital value. It is based on the 'signed' projects from the PFI Project database as at 1 April 2007 and payments data drawn from the Financial Management Shared Service Centre (FMSSC). This table is split into payment groups and individual PFI projects are shown in alphabetical order. Over 50 million (6 Projects) Allenby/Connaught 2 Main Building Refurbishment Attack Helicopter Training Service Skynet 5 Defence Fixed Telecommunications Service (DFTS) Tri-Service White Fleet million (7 Projects) "C" Vehicles Colchester Garrison VAT inclusive at current prices ( million) MOD Wide Water and Wastewater (Project Aquatrine) - Package C Roll-On/Roll-Off (RORO) Strategic Sealift Training Administration and Financial Management Information Systems Joint Services Command and Staff College (TAFMIS) MOD Wide Water and Wastewater (Project Aquatrine) - Package A million (8 Projects) Army Foundation College (AFC) Heavy Equipment Transporters (HET) Defence Sixth Form College (DSFC) Medium Support Helicopter Aircrew Training Facility (MSHATF) Devonport Support Services - ARMADA MOD Wide Water and Wastewater (Project Aquatrine) - Package B Field Electrical Power Supplies (FEPS) Tornado GR4 Simulator 5-10 million (11 Projects) ASTUTE Class Training Service (ACTS) Material Handling Equipment (MHE) - (Follow on) Bristol, Bath and Portsmouth Family Quarters Northwood Headquarters 2 Commercial Satellite Communication Service - INMARSAT RAF Fylingdales Power Station Defence Housing Executive - Information Systems (DOMIS) Royal Navy Fleet Communications Fire Fighting Training Units (FFTU) Marine Support to Range and Aircrew Training Up to 5 million (14 Projects) 4 Central Scotland Family Quarters (HQ) 2 Defence Animal Centre (DAC) Hawk Synthetic Training Facility Hazardous Stores Information System (HSIS) Lynx Mk 7/9 Aircrew Training Service (LATS) Portsmouth Housing 2 2 RAF Cosford/RAF Shawbury Family Quarters Tri-Service Materials Handling Service RAF Lossiemouth Family Quarters RAF Lyneham Sewage Treatment RAF Mail RAF Sentry E3D Aircrew Training Tidworth Water & Sewerage Wattisham & Woodbridge Married Quarters Yeovilton Family Quarters Source: MOD Private Finance Unit & DASA (Economic Statistics) 1. 'Material Handling Equipment (MHE) - "Pathfinder"' project has expired. 'Provision of Storage Service' has been transferred to DTI Nuclear Decommissioning Authority (NDA). 'Records Storage and Management - Hayes PPP Project', 'Defence Intelligence System (Touchstone)' and 'Defence Electronic Commerce Services' are now PPPs. 2. New PFI projects added this year. 3. 'Germany White Fleet' and 'RAF White Fleet' projects absorbed into the 'Tri-Service White Fleet' project. 4. There were no payments in 2006/07 for the 'Electronic Messaging Service (formerly known as Armymail)' project.

24 Chapter 1 - Finance Trade This section contains information on defence trade. This includes the estimated value of imports and exports of defence equipment, estimates of total export deliveries, and orders of defence equipment and services, and payments made for services consumed by MOD establishments overseas. Table 1.13 presents the estimated value of defence equipment imports and exports split by commodity type and origin/destination. Table 1.14 estimates total export deliveries and orders of defence equipment and services. Table 1.15 presents the estimated value of MOD Balance of Payments for Trade in Services. The estimate of total export deliveries is made up of 'identified deliveries' of defence equipment and 'estimates of additional aerospace equipment and services'. Data on exports are provided by HM Revenue & Customs (HMRC) with supplementary data from the Society of British Aerospace Companies (SBAC). Information on export orders are supplied by the Defence Export Services Organisation (DESO). HMRC provide information on deliveries of military or 'other than civil' goods which cross the UK borders. All equipment exports that are reported to UK customs are classified with tariff codes and it is these that we use to determine defence exports. SBAC data covers sales by UK aerospace companies to foreign civil customers and foreign military aerospace industries and military end-users. DESO collects data on defence export contracts and they relate to orders placed. These data are collected from the DESO publication 'The World Defence Export Market' compiled via a quarterly survey with known UK defence contractors. In July 2007 the Prime Minister announced that he was going to shut down DESO and move its responsibilities to the newly-named Department for Business Enterprise and Regulatory Reform, which promotes other British exports. A study led by the Cabinet Office, with MOD, the Foreign and Commonwealth Office and the Department for Business Enterprise and Regulatory Reform, will work out in greater detail how to translate the new policy into practice. The study will be completed by the end of the year, with the necessary changes coming into effect as soon as possible thereafter. It is not certain how this will effect the provision of orders data or future publication of Trade Statistics in UK Defence Statistics. MOD Trade in Services are provisions of services between UK residents and non-residents (e.g. training, cleaning services, IT support etc), and transactions in goods which are not freighted out of the country in which they take place. They are published in an ONS 'First Release' and 'The Pink book'. More information outlining the methodology behind these tables can be found in Defence Statistics Bulletin No 4 and in the National Statistics Quality Review. Further information outlining recent developments with Trade Statistics will be explained in a forthcoming DASA Defence Statistics Bulletin No.8. This will be available on our website during the Autumn. Main Findings Exports of Defence equipment and services Total estimated UK deliveries of exports increased between 2005 and 2006 (from 4.5 billion in 2005 to 4.7 billion in 2006). The 2005 figure has been revised down from 7.1 billion to 4.5 billion. The UK identified export orders increased by 1.5 billion between 2005 and 2006 to 5.5 billion. Balance of Payments: Trade in Services In 2006, the MOD's estimated Balance of Payments for Trade in Services was 2.0 billion in deficit made up of 2.5 billion debits and 0.5 billion receipts. The deficit has increased by 256 million compared to the previous year. Improving the quality of defence related imports and exports data The Defence Analytical Services Agency (DASA) publishes statistics on defence exports and imports annually in UK Defence Statistics (UKDS) (Tables 1.13 & 1.14 in 2007). Data are obtained from three different sources: Her Majesty's Revenue & Customs (HMRC), the Society of British Aerospace Companies (SBAC), and the Defence Exports Services Organisation (DESO). There have been problems with the definition, consistency and coverage of defence related exports data over recent years. DASA has endeavoured to ensure that defence exports statistics are "joined up" across Government. The Defence Trade Statistics Working Group (DTSWG) with representatives from across the relevant Government departments was convened in order to review the quality of the data, the issue of trade suppressions on trade statistics and to ensure consistency/definition across Government. Subject to EU regulations, HMRC collect data on visible (goods) imports and export trade. However some data that are currently collected cannot always be segregated to indicate what is specifically military trade. Trade data are broken down using a standardised EU commodity coding system and while goods in the majority of the commodity codes that are currently employed can be identified as distinctly military or non-military, there are several codes which contain both military and civil trade (dual use). Presently there are no reliable positive identification procedures to determine what proportion of the trade reported in these commodity codes can be classed as military. Developments are underway to examine the potential to improve the quality of defence related imports and exports data. These include: Investigating the impact of changes to the internationally agreed tariff codes used for recording goods exports. These changes had originally contributed to an apparent increase in the deliveries figures from 2005 to The further amalgamation of military and civil codes which has resulted in a discontinuity in the code set used to compile these data has been investigated. It was not clear how far the increase reported reflected a true increase in the value of military goods exported as opposed to the inclusion of civil goods previously excluded. Further investigation of the company level data contained within the HMRC dataset revealed a large element of this reported increase in 2006 (recorded against one of the dual use codes) as being probably civil in nature. Extensive investigations took place to determine the nature of this increase. These included the validation of identified deliveries data with defence export orders data surveyed by MOD and reviewing the content of the HMRC data capture system to seek additional information on the nature of the export deliveries. As a result of the investigations, the 2006 figure has therefore been revised downwards accordingly. Determining the nature of a large increase in aerospace sales reported by the Society for British Aerospace Companies (SBAC). In collating this year's survey SBAC discovered that their turnover and new orders data had been overstated in SBAC has amended 2005 results and conducted a thorough review of 2006 data. They are confident that the aerospace survey provides the most accurate and robust picture of the UK aerospace industry. Changes in the 2006 survey format resulted in some new order and sales data from outside the UK being incorrectly attributed to the UK. Continuing to assess the feasibility of collecting export and import data via existing departmental surveys. We are currently exploring the option to expand the scope of questions contained in the current survey of defence suppliers administered by the Defence Export Services Organisation (DESO). Recent announcements concerning the abolition and subsequent reorganisation of DESO are likely to have a further impact on any firm plans to take this option forward though. Improving the robustness of the current methodology by seeking to incorporate more data quality checks at source. We are also exploring the possibility of further cleansing of the trade data by gaining access to company level data and comparing it to data derived from other internal MOD administrative systems. There are obvious resource implications and data sharing issues for HMRC attached to this approach. DASA plan to conduct a detailed joint validation exercise with HMRC on an annual basis prior to the compilation of the ARSEC/UKDS datasets. However, current data sharing arrangements between BERR, HMRC and MOD need to be reviewed and relaxed in order to facilitate more effective analysis of defence trade data. More information outlining progress with these developments will be explained in a forthcoming DASA Defence Statistics Bulletin No.8. This will be available on our website during the Autumn.

25 Chapter 1 - Finance Table 1.13 Estimated Imports & Exports of Defence Equipment (Goods) This table presents data on the value of defence equipment imports and exports. This information is broken down by commodity grouping and broad geographic region. Data are based on HM Revenue & Customs information relating to defence equipment reported to UK Customs. Defence equipment is identified by an agreed set of tariff codes intended to capture movements of military equipment. Over the period covered by the table, changes have been made to the list of 'identified' defence equipment by, for example, the removal of two HM Customs codes for aerospace from Further details are given in Defence Statistics Bulletin No.4 and in the National Statistics Quality Review on Trade Statistics. For progress relating to improvements to the quality of defence trade statistics, please refer to the notes at the start of this section on Trade. The data in this table are outside the scope of National Statistics because they do not meet all of the high professional quality assurance standards set out in the National Statistics Code of Practice. Current Prices ( million) Identified Imports II II Split by Commodity: Armoured Fighting Vehicles and Parts II II 87 Military Aircraft and Parts II II 677 Warships II II - Guns, Small Arms and Parts II II 96 Guided Weapons, Missiles and Parts II II 188 Ammunition II II 15 Optical Equipment and Training Simulators II II 34 Split by Origin: NATO Countries and Other Europe II II 904 Asia and Far East II II 120 Latin America and Caribbean II II 2 Middle East and North Africa ll ll 59 Other Africa II II 13 Identified Exports II Split by Commodity: Armoured Fighting Vehicles and Parts II 76 Military Aircraft and Parts II 866 Warships II - Guns, Small Arms and Parts II 77 Guided Weapons, Missiles and Parts II 250 Ammunition II 3 Optical Equipment and Training Simulators II 86 Split by Destination: NATO Countries and Other Europe II 914 Asia and Far East ll 254 Latin America and Caribbean II 6 Middle East and North Africa II 172 Other Africa II 12 Source: HM Revenue & Customs 1. Changes to the internationally agreed tariff codes used for recording goods exports (see Annex C of the Annual Report on Strategic Export Controls) had originally contributed to an apparent increase in the deliveries figures from 2005 to The further amalgamation of military and civil codes which has resulted in a discontinuity in the code set used to compile these data has been investigated. It was not clear how far the increase reported reflected a true increase in the value of military goods exported as opposed to the inclusion of civil goods previously excluded. Further investigation of the HMRC dataset revealed a large element of this reported increase in 2006 (recorded against one of the dual use codes) as being probably civil in nature. The 2006 figure has therefore been revised downwards accordingly.

26 Chapter 1 - Finance Table 1.14 Estimates of Total Export Deliveries & Orders: Defence Equipment & Services This table provides an estimate of total defence export activity relating to the UK. It uses data on additional aerospace equipment and services from a survey undertaken by the Society of British Aerospace Companies. Aerospace services include training, consultancy and project support related to the export activity. The second part of the table provides data on identified export orders of defence equipment and services. This illustrates the relationship between export orders and actual export deliveries. The data in this table are outside the scope of National Statistics because they do not meet all of the high professional quality assurance standards set out in the National Statistics Code of Practice. Current Prices ( million) Estimated Total Export Deliveries: Equipment & Services r Of which: Identified Defence Equipment Exports Estimates of Additional Aerospace Equipment r and Services Identified Export Orders for Defence Equipment and Services Split by Equipment Type: Air Sector Land Sector Sea Sector Not Specified Source: MOD Defence Export Services Organisation (DESO) 1. Changes to the internationally agreed tariff codes used for recording goods exports (see Annex C of the Annual Report on Strategic Export Controls) had originally contributed to an apparent increase in the deliveries figures from 2005 to The further amalgamation of military and civil codes which has resulted in a discontinuity in the code set used to compile these data has been investigated. It was not clear how far the increase reported reflected a true increase in the value of military goods exported as opposed to the inclusion of civil goods previously excluded. Further investigation of the HMRC dataset revealed a large element of this reported increase in 2006 (recorded against one of the dual use codes) as being probably civil in nature. The 2006 figure has therefore been revised downwards accordingly. 2. In collating this year's survey SBAC discovered that their turnover and new orders data had been overstated in SBAC has amended 2005 results and conducted a thorough review of 2006 data. They are confident that the aerospace survey provides the most accurate and robust picture of the UK aerospace industry. Changes in the 2006 survey format resulted in some new order and sales data from outside the UK being incorrectly attributed to the UK. 3. Figures for export orders are taken from the Defence Export Services Organisation's survey of known Defence Contractors.

27 Chapter 1 - Finance Table 1.15 Ministry of Defence Estimated Balance of Payments for Trade in Services Balance of Payments is a measure of the UK's trading account with the rest of the world. Trade in Services are provisions of services between UK residents and non-residents (e.g. training, cleaning services, IT support etc), and transactions in goods which are not freighted out of the country in which they take place; these transactions are not recorded in the official 'Trade in Goods' statistics. A detailed discussion of these concepts can by found in the latest edition of The Pink Book published by the Office for National Statistics. More details are available in Defence Statistics Bulletin No 4 or in the National Statistics Quality Review report on Balance of Payments: Trade in Services. The data in this table are outside the scope of National Statistics because they do not meet all of the high professional quality assurance standards set out in the National Statistics Code of Practice. Current prices ( million) Net Balance ll Total Debits Expenditure 2 Germany Other Identified NATO Countries Mediterranean Far East Other Areas Total Credits Receipts 3 Receipts from US Forces in UK Other Receipts Source: DASA (Economic Statistics) 1. The increase in 'Total Debits' in 2003 was largely attributable to increased spending on services as a result of military activity in Iraq. 2. Based on drawings of foreign exchange. 3. A mix of export sales and receipts from other Government and International Organisations for services provided overseas and to overseas forces based in the UK. 4. The increase in 'Other Receipts' from 2003 is due to the improvement in the methodology used to identify receipts data.

28 Chapter 1 - Finance Defence Contracts This section presents an analysis of contracts placed, major equipment projects and payments made by the MOD. Table 1.16 shows the number and value of contracts placed by type during 2006/07 and earlier years. Table 1.17 presents more information on the MOD's major equipment projects. Table 1.18 provides a list, by broad-banded value, of organisations paid 5 million or more during 2006/07. Following requests from UK industry, Table 1.18a provides a further dimension on the data contained within Table 1.18 by presenting the individual subsidiary organisations "rolled up" into their holding companies. These data are based on information from the Financial Management Shared Service Centre (FMSSC) - formerly the Defence Bills Agency (DBA) who is responsible for setting up and paying the majority of the MOD contracts issued each year. Information on Major Equipment Projects comes from the "Major Projects Report". This details the largest post Main-Gate Approval Projects along with the largest pre Main-Gate Approval Projects. The full report provides a summary of each project's current status and progress to date. It also provides comparisons on current forecast costs and in-service dates. Smart Procurement stresses the importance of allocating appropriate resources in the early stages to reduce risk and increase confidence before the main investment decision is made. This is known as the Smart Procurement Acquisition Cycle. Under Resource Accounting and Budgeting all costs are at estimated outturn prices and include 'new' types of cost such as the cost of capital charge. Main Findings Contracts by Type In 2006/07 MOD HQ placed nearly 22,700 contracts with a collective value of around 28.1 billion. The number of contracts placed has decreased by 12% between 2005/06 and 2006/07 whilst the value has increased by 54% ( 9.9 billion) over the same period, highlighting the move towards more through-life capability contracts. Please note that most contract payments are not made during the year in which the contract is placed. Of the total value of MOD HQ contracts placed around 70% was priced by competition. Major Equipment Projects The largest post Main-Gate equipment project by value is the Type 45 Destroyer ( 6.1 billion). This is followed by the Astute Class Submarine ( 3.7 billion) and the Nimrod Maritime Reconnaissance and Attack Mk4 ( 3.5 billion).

29 Chapter 1 - Finance Table 1.16 Contracts Placed: By Type This table provides an analysis of MOD new contracts and value of amendments to existing contracts broken down by contract type. It includes contracts set up for payment through the Financial Management Shared Service Centre (FMSSC) - formerly the Defence Bills Agency (DBA) - who are responsible for the payment of the majority of MOD contracts. Current Prices ( million)/percentage 1990/ / / / / / / / /07 Total Value of MOD HQ Contracts Placed Percentage of Total Value: Contracts Priced by Competition Contracts Priced by Reference to Market Forces Contracts Priced on Estimates at Outset or as soon as possible thereafter Contracts Priced on Actual Costs with Incentives to Minimise Cost Contracts Priced on Actual Costs plus a % Fee Number/Percentage Total Number of MOD HQ Contracts Placed Percentage of Total Number: Contracts Priced by Competition Contracts Priced by Reference to Market Forces Contracts Priced on Estimates at Outset or as soon as possible thereafter Contracts Priced on Actual Costs with Incentives to Minimise Cost Contracts Priced on Actual Costs plus a % Fee Source: MOD Directorate of Defence Commercial Policy 1. Includes amendments which had financial implications for existing contracts. 2. Includes the use of informal competitive tendering procedures and commercial price lists. 3. Priced by reference to the Government profit formula. 4. The variation between 2001/02 and 2002/03 in number of contracts placed both by "reference to Market Forces" and "priced on estimates at outset" are due to a combination of increased requirements for Operation Telic and an internal reclassification of contracts in both of these categories. Value of Contracts placed by type

30 Chapter 1 - Finance Table 1.17 Major Equipment Projects This table shows the MOD's major equipment projects as at 31 March It details the 20 largest projects on which the main investment decision has been taken (post Main-Gate) and the 10 largest projects yet to reach that point (pre Main-Gate). The information is taken from the Major Projects Report, relating to 31 March 2006 which provides a summary of each project's current status and progress to date. The Major Projects Report was changed in MPR2006 to remove forecast In Service Dates to reflect the Department's policy on public release of Assessment Phase project information. Costs are on a resource basis at outturn prices. Forecast costs include accruals, VAT (less recoverable elements), resource elements such as interest on capital and inflation factors. Pre 1999 figures have been uplifted to 99/00 prices. Major Project Report costs relating to the pre-main Gate projects are costs of the Assessment phase only. For post Main-Gate projects, costs are of the Demonstration and Manufacture phases. The following diagram shows the CADMID cycle which is the basis for MOD Smart Procurement. The main investment decision is taken at Main-Gate, ie post assessment phase with the aim of ensuring that there is a high level of confidence in achieving time, cost and performance targets. Further information is contained in the Major Projects report. As at 31 March 2006 MPR2006 Post Main Gate Major Equipment Projects (Projects in Demonstration and Manufacture Phase only) In-Service date Forecast or Actual Financial Years of Peak Expenditure 1 Forecast Cost ( million) Change in Cost ( million) from MPR2005 A400M & Astute Class Submarine & Beyond Visual Range Air-To-Air Missile (BVRAAM) & Bowman & Brimstone & * Combat DBL Infrastructure & Platform BISA (CIP) & C Vehicle Capability & Future Joint Combat Aircraft (FJCA) & Guided Multiple Launch Rocket System & Light Forces Anti-Tank Guided Weapon System (LFATGWS) & Next Generation Anti-Armour Weapon (NLAW) & Nimrod Maritime Reconnaissance and Attack Mk & Panther Command and Liaison Vehicle & Precision Guided Bomb (PGB) & Sting Ray Lightweight Torpedo Life Extension and Capability Upgrade & Support Vehicle & Terrier & Trojan & Titan & * Type 45 Destroyer & Typhoon & 2008 * * Source: Defence Equipment & Support As at 31 March 2006 MPR 2006 Pre Main Gate Major Equipment Projects (Projects in Assessment Phase only) Forecast Cost ( million) Advanced Jet Trainer 73 Falcon 31 Future Aircraft Carrier (CVF) 302 Future Integrated Soldier Technology (FIST) 33 Future Rapid Effects System 649 Future Strategic Tanker Aircraft (FSTA) 30 Indirect Fire Precision Attack (IFPA) 20 Military Afloat Reach & Sustainability 4 * UK Military Flying Training System (UKMFTS) 29 Watchkeeper 65 Source: Defence Equipment & Support 1. Financial Year commencing 1 April - not necessarily concurrent years. 2. Cost comparison not possible as project did not appear in previous MPR. 3. PFI Service with annual service payment. 4. Cost data excluded on grounds of commercial sensitivity. 5. The change in cost figure for this project is taken from the Major Projects Report 2006 publication as at 31 March 2006 and reflects the forecast cost of 5953m for MPR2005.

31 Chapter 1 - Finance Table 1.18 Organisations paid 5 million or more by the Ministry of Defence in 2006/07 This table shows a listing of the UK and foreign owned organisations, including defence suppliers and intermediate bodies paid through the Defence Bills Agency (DBA). The term 'defence suppliers' includes defence contractors, Defence Agencies and other Government Departments. The DBA, now called the Financial Management Shared Service Centre (FMSSC), is responsible for the majority of such payments (around 95% by value) made by MOD. Other payments are made, for example, via British Defence Staff (United States), MOD Trading Funds and through local cash offices. The table is split into payment groups with the organisations shown in alphabetical order. Company and organisation names have been reproduced (at the 1 April 2007 position) directly from the truncated entries recorded on the FMSSC database and may appear in a shortened format in places. Where a contract is novated during the year, annual payments are shown against the new 'owner' (company or entity) of that contract. Over 500 million (6 Organisations) AWE Management Ltd BAE Systems Electronics Ltd NETMA BAE Systems (Operations) Ltd EDS Defence Ltd QinetiQ Ltd million (6 Organisations) Debut Services Ltd 1 Devonport Royal Dockyard Ltd MBDA UK Ltd Defence Science & Technology Laboratory General Dynamics United Kingdom Ltd Westland Helicopters Ltd million (23 Organisations) ABRO British Telecommunications PLC Raytheon Systems Ltd VAT exclusive at current prices ( million) Annington Receivables Ltd Europaams SAS Reserve Forces and Cadet Association 2 Aspire Defence Ltd Fleet Support Ltd Rolls Royce Power Engineering PLC Babcock Support Services Ltd Marshall Of Cambridge Aerospace Ltd Rolls-Royce PLC BAE Systems Integrated System Technologies Ltd Meteorological Office Serco Ltd BAE Systems Land Systems (Munitions & Ordnance) Ltd Modern Housing Solutions (Prime) Ltd Thales UK Ltd BAE Systems Land Systems (Weapons & Vehicles) Ltd Paradigm Secure Communications Ltd VT Land (Whitefleet Management) Ltd BP International Ltd Pride (Serp) Ltd million (30 Organisations) Agustawestland International Ltd Defense Finance & Accounting Service Columbus Oshkosh Truck Corporation AMEC Turner Ltd Flagship Training Ltd Purple Foodservice Solutions Ltd Aviation Training International Ltd HCR Ltd Raytheon/Lockheed Martin Javelin Joint Venture Babcock Naval Services Ltd IBM UK Ltd Selex Sensors and Airborne Systems Ltd BAE Systems Marine Ltd Interserve (Defence) Ltd Shell Marine Products Ltd BFS Group Ltd Kellogg Brown & Root Ltd Sodexho Defence Services Ltd British Energy Direct Ltd Landmarc Support Services Ltd Thales Air Defence Ltd British Gas Trading Ltd Lockheed Martin Aerospace Systems Integration Thales Underwater Systems Ltd Corporation Carillion Enterprise Ltd McDonnell Douglas Corporation The Boeing Company Defence Aviation Repair Agency (DARA) Modus Services Ltd Ultra Electronics Ltd million (42 Organisations) ALC (SPC) Ltd EADS Defence and Security Systems Ltd NP Aerospace Ltd AMEC(AGL) Ltd ESSO Petroleum Company Ltd Office of Communications (OFCOM) Aramark Ltd FBS Ltd Rail Settlement Plan Ltd Atkins Consultants Ltd Foreign & Commonwealth Office Receiver General of Canada Babcock Dyncorp Ltd Foreland Shipping Ltd RMPA Services PLC BAE Systems (Defence Systems) Ltd FR Aviation Ltd Royal & Sun Alliance Insurance PLC Brey Utilities Ltd Fujitsu Services Ltd Selex Communications Ltd Cap Gemini UK PLC Guy's & St Thomas NHS Foundation Trust Serco-Denholm Ltd Central Office of Information HM Revenue & Customs Thales Naval Ltd CEPSA Kuwait Petroleum International Aviation Company (UK) Thales Optronics Ltd Ltd Coast To Coast Water Ltd Lockheed Martin UK Ltd The Services Sound and Vision Corporation Commonwealth War Graves Commission M & S Shipping (International) Ltd Turner Facilities Management Ltd Compass Services (UK) Ltd Northrop Grumman Information Technology International VT Aerospace Ltd Inc Defence Management (Watchfield) Ltd Northrop Grumman Overseas Service Corporation VT Integrated Services Ltd million (89 Organisations) A & P Falmouth Ltd Exxonmobil Aviation International Ltd OCCAR - EA AAH Pharmaceuticals Ltd Falcon Support Services Ltd Organisation For Joint Armaments Co-Operation Executive Admin Aerosystems International Ltd Fasttrax Ltd Pains Wessex Ltd Air Partner PLC FB Heliservices Ltd Perkins Engines Company Ltd Alfred McAlpine Business Services Ltd Genistics Ltd Pinzgauer Ltd Arval PHH Business Solutions Ltd Goodrich Control Systems Ltd Post Office Ltd Astrum (UK) Ltd Haymills (Contractors) Ltd Primary Management (Aldershot) Ltd Atkins Facilities Management Ltd Hesco Bastion Ltd Raytheon Company Atos Consulting Ltd Inchcape Shipping Services Ltd Rolls-Royce Turbomeca Ltd Babcock International Group PLC Inviron Ltd Ryder Deutschland GmbH Balfour Beatty Group Ltd Iturri SA Scottish & Southern Energy PLC

32 Barloworld Handling Ltd Kier Regional Ltd Seafast Logistics PLC Bechtel Ltd Land Rover Smiths Aerospace Ltd British Nuclear Group Sellafield Ltd Lockheed Martin Aeronautics Company Software Box Ltd Burness Corlett - Three Quays Ltd Lockheed Martin Corporation SSAFA Family Health Services Cabinet Office Lockheed Martin Overseas Corporation SSE Energy Supply Ltd CAE (UK) PLC Lockheed Martin UK Insys Ltd Supreme HQ Allied Powers Europe (SHAPE) CAE Aircrew Training Services PLC Logica CMG UK Ltd Swan Hunter (Tyneside) Ltd Chapman Freeborn Airchartering Ltd Mansell Construction Services Ltd Systems Consultants Services Ltd Chevron Singapore Pte Ltd Mass Consultants Ltd Thales Avionics Ltd City Of Westminster Microsoft Ireland Operations Ltd Thales Training & Simulation (Ace) Ltd Compass Group UK and Ireland Ltd Minerva Education And Training Ltd Thales Training & Simulation (Merlin) Ltd Computacenter (UK) Ltd NAAFI Thames Water Nevis Ltd Cooneen Watts & Stone Ltd National Air Traffic Services Ltd The Treasury Solicitor Cranfield University NATO Shape The United Kingdom Hydrographic Office Defence Training Services Ltd NATS (En Route) PLC United Tool Distributors Ltd DHL Global Forwarding (UK) Ltd Northrop Grumman Electronics & Systems Integration Int Vega Group PLC Inc Drumgrange Ltd Northwestern Shiprepairers And Shipbuilders Ltd VT Communications Ltd Eurocopter Npower Ltd VT Maritime Affairs Ltd Excel Aviation Ltd NSSL Ltd 5-10 million (126 Organisations) Advantage Technical Consulting Ltd Gosport Borough Council Product Procurement Services Ltd Aegis Engineering Ltd Government Communications HQ PW Defence Ltd Aggregate Industries UK Ltd GVA Grimley LLP Qioptiq Ltd Akhter Computers PLC Hewlett Packard Ltd Racal Acoustics Ltd Alert Communications Ltd Hirtenberger Defence Systems GmbH & Co Kg Rate Collection Agency AMEC Group Ltd Honeywell Aerospace UK Remotec UK Ltd Aqumen Services Ltd Imes Ltd Rfd Beaufort Ltd Argyll & Bute Council Imtech Marine & Offshore Ltd Rheinmetall Waffe Munition GmbH Astron Document Services Ltd Irvin-GQ Ltd Ricardo UK Ltd Avenance PLC ISS Mediclean Ltd Richmondshire District Council AXA Corporate Solutions Services UK Ltd J & S Franklin Ltd Right Coutts Ltd BAE Systems / Rockwell Collins Data Link Solutions LLC Jankel Armouring Ltd Rockwell Collins Uk Ltd BAE Systems Hagglunds AB John Graham (Dromore) Ltd Rolls Royce Marine Power Operations Ltd Bayford & Co Ltd Kidde Graviner Ltd Royal Hospital BMT Defence Services Ltd Lincad Ltd Ryder PLC BOC Ltd Lockheed Martin System Integration-Owego Saab Bofors Dynamics AB Bonar Floors Ltd London & Regional (St Georges Court) Ltd Saab Training Systems AB Bovis Lend Lease Ltd London Borough Of Camden Salisbury District Council BP Oil UK Ltd M S I - Defence Systems Ltd SCA Packaging Ltd Bristol Aerospace Ltd Marine Engineering & Fabrications Ltd Sea Cadet Corps Britten-Norman Aircraft Ltd Meggitt (UK) Ltd Selex Sistemi Integrati Ltd Canon (UK) Ltd Microsoft Ltd Shell UK Oil Products Ltd Centerprise International Ltd Modis International Ltd Sigma Aerospace Ltd Claverham Ltd Monarch Airlines Ltd Skanska Construction UK Ltd Clugston Group Ltd Mowag GmbH Smit International (Scotland) Ltd Compass Contract Services (UK) Ltd NAMSA Sodexho Ltd Cubic Defense Applications Inc NATO South Gloucestershire Council David Brown Engineering Ltd NC3A South Tees Hospitals NHS Trust Deloitte & Touche LLP NSAF Ltd Steria Ltd Department for Work and Pensions Oracle Corporation UK Ltd Stewart Hughes Ltd E2V Technologies (UK) Ltd PA Consulting Services Ltd Systems Engineering & Assessment Ltd EADS Defence Systems and Electronics (UK) Ltd Pace Petroleum Ltd T G Power Ltd Eastbury Park Ltd Paradigm Services Ltd Thales Communications Ltd English Welsh & Scottish Railway Ltd PCG Group The Moray Council Farrans (Construction) Ltd Penman Engineering Ltd Tramp Oil & Marine Ltd Fast Training Services Ltd Permali Gloucester Ltd Tricomm Housing Ltd Firearms Training Systems Ltd Petards Joyce-Loebl Ltd Turbomeca Ltd Flagship Fire Fighting Training Ltd Portsmouth Aviation Ltd University Hospital Birmingham NHS Foundation Trust Fluid Transfer International Ltd Portsmouth City Council Veritair Ltd Frimley Park Hospital NHS Foundation Trust Portsmouth Hospitals NHS Trust VT Halmatic Ltd G3 Systems Ltd Powerfield Ltd VT Shipbuilding Ltd Golley Slater & Partners Ltd PricewaterhouseCoopers LLP West Berkshire District Council Source: DASA(Economic Statistics) 1. Debut Services Ltd includes payments made to Debut Services Ltd and Debut Services (South West) Ltd. 2. Reserve Forces and Cadets Association includes payments made to: the Council of Reserve Forces and Cadets Association, Reserve Forces and Cadets Association for East Anglia, East Midland Reserve Forces and Cadets Association, Lowland Reserve Forces and Cadets Association, Reserve Forces and Cadets Association for Wales, Reserve Forces and Cadets Association for Greater London, South East Reserve Forces and Cadets Association, The Highland Reserve Forces and Cadets Association, The Reserve Forces and Cadets Association for the North of England, The Reserve Forces and Cadets Association for the NW of England and the IOM, The Reserve Forces and Cadets Association for Yorkshire and the Humber, The Wessex Reserve Forces and Cadets Association, West Midland Reserve Forces and Cadets Association and Reserve Forces and Cadets Association for Northern Ireland.

33 Chapter 1 - Finance Table 1.18a Private Sector Companies paid 50 million or more by the Ministry of Defence in 2006/07: By Holding Company This table (which is derived from Table 1.18) shows a subset of the data contained within Table 1.18, providing a listing of the Private Sector Companies that were paid 50 million or more through the Financial Management Shared Service Centre (FMSSC) - formerly the Defence Bills Agency (DBA) - in 2006/07. This listing details the individual subsidiaries listed in Table 1.18 'rolled up' by holding company and single entity private companies where no other subsidiary has been recorded by the FMSSC. The term 'holding company" refers to companies which are full or part owner of other companies (subsidiaries and joint ventures). The table includes only those subsidiaries where the MOD has made payments during 2006/07 and therefore, is not an exhaustive listing of all subsidiaries and joint ventures relating to that holding company. It also excludes those companies and/or joint ventures which work as part of a consortium. Payments to joint ventures have been allocated to their parent holding companies in proportion to their equity holdings. The table excludes all payments made to public sector bodies, government departments and agencies, local authorities, MOD trading funds, multi nation project management agencies, charities and associations. Please note that the placement of companies by payment bandings may differ from Table 1.18 as the sum of the annual payments made to the holding company will exceed the values for individual subsidiaries listed in Table The composition of Holding Companies in terms of their subsidiaries is derived as at 31 March A listing of each company's subsidiaries and joint ventures, who have made payments during 2006/07, can be found in the footnotes below. It is recognized that the structure and ownership of modern corporations is dynamic and changes frequently. The FMSSC are responsible for the majority of such payments (around 95% by value) made by MOD. Other payments are made, for example, via British Defence Staff (United States), MOD Trading Funds and through local cash offices. The table is split into payment groups with the companies shown in alphabetical order. Company and organisation names have been reproduced (at 1 April 2007 position) directly from the truncated entries recorded on the FMSSC database and may appear in a shortened format in places. Where a contract is novated during the year, annual payments are shown against the new 'owner' (company or entity) of that contract. VAT exclusive at current prices ( million) Over 500 million (4 Companies) BAE Systems PLC 1 Finmeccanica 3 QinetiQ Group PLC 4 Electronic Data Systems Corporation million (9 Companies) Babcock International Group PLC 5 Halliburton Co 8 Serco Group PLC 11 EADS 6 Lockheed Martin Corporation 9 Thales Defence Ltd 12 General Dynamics Corporation 7 Rolls Royce Group PLC 10 VT Group PLC million (14 Companies) Amec PLC 14 Cobham PLC 19 The Boeing Company 24 Aspire Defence Holdings Ltd 15 Interserve PLC 20 BP PLC 25 Balfour Beatty PLC 16 Le Grand Annington Ltd 21 The Marshall Group 26 BT Group PLC 17 Lend Lease Corporation Ltd 22 The Weir Group PLC 27 Carillion PLC 18 Raytheon Company million (12 Companies) Atkins (WS) PLC 28 International Business Machines Corporation 32 Royal Dutch Shell PLC 36 British Energy Group PLC 29 Modus Services (Holdings) Ltd 33 Sodexho Alliance 37 Centrica PLC 30 Northrop Grumman Corporation 34 The Bidvest Group Ltd 38 HCR Group Holdings Ltd 31 Oshkosh Truck Corporation 35 Ultra Electronics Holdings PLC 39 Source: DASA (Economic Statistics) 1. BAE Systems PLC includes payments made to Aerosystems International Ltd, BAE Systems (Aviation Services) Ltd, BAE Systems (Defence Systems) Ltd, BAE Systems (Hawk Synthetic Training) Ltd, BAE Systems (Operations) Ltd, BAE Systems (Systems & Equipment) Ltd, BAE Systems Bofors AB, BAE Systems CNIR Ltd, BAE Systems Defence Ltd, BAE Systems Electronics Ltd, BAE Systems Hagglunds AB, BAE Systems Information & Electronic Systems Integration Inc, BAE Systems Information & Electronic Warfare Systems, BAE Systems Integrated System Technologies Ltd, BAE Systems Land Systems (Bridging) Ltd, BAE Systems Land Systems (Munitions and Ordnance) Ltd, BAE Systems Land Systems (Weapons and Vehicles) Ltd, BAE Systems Marine Ltd, BAE Systems Mission Solutions Inc, BAE Systems Pension Funds Trustees Ltd, BAE Systems PLC, BAE Systems Properties Ltd, BAE Systems/Rockwell Collins Data Link Solutions Ltd, Corda Ltd, Euromissile GIE, Flagship Training Ltd, Fleet Support Ltd, Heckler & Koch GmbH, MBDA UK Ltd, NSAF Ltd, SAAB Bofors Dynamics AB and Spectrum Technologies PLC. 2. Electronic Data Systems Corporation includes payments made to EDS Defence Ltd, Electronic Data Systems Ltd and Unigraphics Solutions GmbH. 3. Finmeccanica includes payments made to Agustawestland International Ltd, Aviation Training International Ltd, Galileo Avionica Spa, MBDA UK Ltd, Selex Communications Ltd, Selex Sensors & Airborne Systems Ltd, Selex Sistemi Integrati Ltd and Westland Helicopters Ltd. 4. QinetiQ Group PLC includes payments made to ASAP Calibration Services Ltd, QinetiQ Ltd and QinetiQ Nanomaterials Ltd. 5. Babcock International Group PLC includes payments made to Babcock Design and Technology Ltd, Babcock Dyncorp Ltd, Babcock International Group PLC, Babcock Naval Services Ltd, Babcock Support Services Ltd, Debut Services Ltd, Debut Services (South West) Ltd, FBM Babcock Marine Ltd, Hiberna FM Ltd, Marine Engineering and Fabrications Ltd, Mitsui Babcock Energy Ltd, Rosyth Europarc Ltd, Rosyth Royal Dockyard Ltd and Rosyth Royal Dockyard Pension Scheme. 6. EADS includes payments made to Airbus UK Ltd, Dassault Aviation, EADS Astrium Ltd, EADS Defence & Security Systems Ltd, EADS Defence Systems and Electronics (UK) Ltd, EADS Deutschland GmbH, EADS Test and Services (UK) Ltd, EADS Test and Engineering Services (UK) Ltd, Eurocopter International (UK) Ltd, Infoterra Ltd, MBDA UK Ltd, Paradigm Secure Communications Ltd, Paradigm Services Ltd and Roxell Ltd. 7. General Dynamics Corporation includes payments made to General Dynamics Santa Barbara Sistemas GmbH, General Dynamics Satellite Communication Services Ltd, General Dynamics United Kingdom Ltd and Mowag GmbH.

34 8. Halliburton Corporation includes payments made to Devonport Management Ltd, Frazer-Nash Consultancy Ltd, Kellogg Brown and Root (UK) Ltd, LSC Group Ltd and Mono Pumps Ltd. 9. Lockheed Martin Corporation includes payments made to AWE Management Ltd, AWE PLC, Lockheed Martin Aeronautics Company, Lockheed Martin Aerospace Systems Integration Corp, Lockheed Martin Canada Inc, Lockheed Martin Corp, Lockheed Martin Maritime Systems & Sensors Ltd, Lockheed Martin Overseas Corp, Lockheed Martin Stasys Ltd, Lockheed Martin Sippican Inc, Lockheed Martin System Integration-Owego Ltd, Lockheed Martin UK Ltd, Lockheed Martin UK Insys Ltd, Lockheed Martin UK Integrated Systems & Solutions Ltd and Raytheon/Lockheed Martin Javelin Joint Venture. 10. Rolls Royce Group PLC includes payments made to Bristol Aerospace Ltd, Data Systems and Solutions Ltd, Industria de Turbo Propulsores S.A., Rolls Royce Corporation, Rolls-Royce Marine Electrical Systems Ltd, Rolls-Royce Marine Power Operations Ltd, Rolls-Royce PLC, Rolls-Royce Power Engineering PLC, Rolls-Royce Turbomeca Ltd and Vinters Engineering PLC. 11. Serco Group PLC includes payments made to AWE Management Ltd, AWE PLC, Defence Management (Watchfield) Ltd, NPL Management Ltd, Serco Aerospace Ltd, Serco-Denholm Ltd, Serco Gulf Engineering Ltd, Serco-IAL Ltd and Serco Ltd. 12. Thales Defence Ltd includes payments made to BMT Seatech Ltd, Dassault Aviation, Quintec Associates Ltd, Racal Acoustics Ltd, Thales Air Defence Limited, Thales ATM Ltd, Thales Avionics Electrical Systems Ltd, Thales Avionics Ltd, Thales Avionics SA, Thales Communications Ltd, Thales Communications SA, Thales E-Security Ltd, Thales Missile Electronics Ltd, Thales Naval Ltd, Thales Nederland BV, Thales Norway AS, Thales Optronics Ltd, Thales Optronics (Bury St Edmunds) Ltd, Thales Optronics (Taunton) Ltd, Thales Training & Simulation Ltd, Thales Training & Simulation (ACE) Ltd, Thales Training & Simulation (Eagle Middle Wallop) Ltd, Thales Training & Simulation (Merlin) Ltd, Thales UK Ltd and Thales Underwater Systems Ltd. 13. VT Group PLC includes payments made to Flagship Fire Fighting Training Ltd, Flagship Training Ltd, Fleet Support Ltd, Vosper-Mantech Ltd, VT Aerospace Ltd, VT Career Progressions Ltd, VT Communications Ltd, VT Group PLC, VT Halmatic Ltd, VT Integrated Services Ltd, VT Land (Whitefleet Management) Ltd, VT Marine Products Ltd, VT Maritime Affairs Ltd, VT Merlin Communications Ltd, VT Shipbuilding Ltd, VT Software Solutions Ltd and VT Vehicle Solutions Ltd. 14. AMEC PLC includes payments made to Amec AGL Ltd, Amec Capital Projects Ltd, Amec Group Ltd, Amec NNC Ltd, Amec Turner Ltd, Denco Ltd and IDC UK Ltd. 15. Aspire Defence Holdings Ltd includes payments made to Aspire Defence Ltd and Aspire Defence Services Ltd. 16. Balfour Beatty PLC includes payments made to Balfour Beatty Civil Engineering Ltd, Balfour Beatty Construction Ltd, Balfour Beatty Group Ltd, Balfour Kilpatrick Ltd, Devonport Management Ltd, Exeter & Devon Airport Ltd, Fraser-Nash Consultancy Ltd, LSC Group Ltd and Mansell Construction Services Ltd. 17. British Telecommunications Group PLC includes payments made to British Telecommunications PLC, Gibraltar Telecommunications International Ltd and Syntegra Ltd. 18. Carillion PLC includes payments made to Aqumen Services Ltd, Carillion Construction Ltd, Carillion Enterprise Ltd, Carillion JM Ltd, Carillion Services Ltd, Carillion Specialist Services Ltd, Carillion Technical Services (Installation) Ltd, Modern Housing Solutions (Prime) Ltd, Mowlem PLC, Planned Maintenance Engineering Ltd, Schal International Management Ltd, Sovereign Consultancy Services Ltd and TPS Consult Ltd. 19. Cobham PLC includes payments made to Atlantic Microwave Ltd, Carleton Life Support Technologies Ltd, Chelton (Electrostatics) Ltd, Cobham Advanced Composites Ltd, Cobham Composites Ltd, Cobham Defence Communications Ltd, Cobham Fluid Systems Ltd, Credowan Ltd, Culham Lighting Ltd, ERA Technology Ltd, FB Heliservices Ltd, FBS Ltd, Flight Precision Ltd, Flight Refueling Ltd, FR Aviation Ltd, Micromill Electronics Ltd, Racal Antennas Ltd and Wallop Defence Systems Ltd. 20. Interserve PLC includes payments made to Interserve (Defence) Ltd, Interserve (Facilities Management) Ltd, Interserve Investments PLC, Interserve Project Services Ltd, Landmarc Support Services Ltd and Pride (Serp) Ltd. 21. Le Grand Annington Ltd includes payments made to Annington Property Ltd and Annington Receivables Ltd. 22. Lend Lease Corporation Ltd includes payments made to Bovis Lend Lease Ltd, Debut Services Ltd and Debut Services (South West) Ltd. 23. Raytheon Company includes payments made to Raytheon Aircraft Company, Raytheon Aircraft Parts Inventory & Distribution Company, Raytheon Aircraft Services Ltd, Raytheon Company, Raytheon/Lockheed Martin Javelin Joint Venture, Raytheon Systems Company, Raytheon Systems Ltd and Raytheon Systems Development Company. 24. The Boeing Company includes payments made to The Boeing Company Ltd, Jeppesen Sanderson Inc and McDonnell Douglas Corp. 25. BP PLC includes payments made to Air BP Ltd, BP International Ltd, BP Lubricants (UK) Ltd, BP Marine Ltd, BP Oil UK Ltd and British Pipeline Agency Ltd. 26. Marshall Group PLC includes payments made to Marshall Aerospace International Services Ltd, Marshall of Cambridge Aerospace Ltd, Marshall Motor Group Ltd, Marshall Specialist Vehicles Ltd and Marshall Thermo King Ltd. 27. The Weir Group PLC includes payments made to Devonport Management Ltd, Darchem Engineering Ltd, Frazer-Nash Consultancy Ltd, LSC Group, Strachan & Henshaw Ltd, Weir Engineering Services Ltd, Weir Pumps Ltd, Weir Quay Boatyard Ltd and Weir Strachan & Henshaw Ltd. 28. Atkins (WS) PLC includes payments made to Atkins & Partners Ltd, Atkins Consultants Ltd, Atkins Facilities Management Ltd, Atkins Ltd, Lambert Smith Hampton Group Ltd and Modern Housing Solutions (Prime) Ltd. 29. British Energy Group PLC includes payments made to British Energy Ltd and British Energy Direct Ltd. 30. Centrica PLC includes payments made to British Gas Trading Ltd. 31. HCR Group Holdings Ltd includes payments made to HCR Ltd. 32. International Business Machines Corporation includes payments made to Continuity Services Ltd, Data Sciences UK Ltd, IBM UK Ltd and IBM UK Financial Services Ltd. 33. Modus Services (Holdings) Ltd includes payments made to Modus Services Ltd. 34. Northrop Grumman Corporation includes payments made to Northrop Grumman Corporation, Northrop Grumman Electronics & Systems Integration International Inc, Northrop Grumman Information Technology International Inc, Northrop Grumman ISS International Inc, Northrop Grumman Overseas Service Corporation, Northrop Grumman Space & Mission Systems Corporation, Northrop Grumman Sperry Marine Ltd and Northrop Grumman Sperry Marine BV. 35. Oshkosh Truck Corporation includes payments made to Oshkosh Truck Corporation. 36. Royal Dutch Shell PLC includes payments made to Shell Aviation Ltd, Shell Marine Products Ltd, Shell UK Ltd and Shell UK Oil Products Ltd. 37. Sodexho Alliance includes payments made to Primary Management (Aldershot) Ltd, RGC, Sodexho Defence Services Ltd, Sodexho Land Technology Ltd, Sodexho Ltd and Sodexho Prestige Ltd. 38. The Bidvest Group Ltd includes payments made to BFS Group Ltd. 39. Ultra Electronics Holdings PLC includes payments made to Ultra Electronics Ocean Inc and Ultra Electronics Ltd.

35 Chapter 1 - Finance International Defence This section presents information on MOD's commitment to Conflict Prevention, contextual information on NATO countries' defence expenditure and information on the top world-wide military spenders. Table 1.19 presents the estimated costs incurred by MOD in respect of conflict prevention during the past three financial years. Table 1.20 details the defence expenditure in local currency for each of the NATO countries. Table 1.21 presents the defence expenditure as a percentage of GDP for each of the NATO countries. Table 1.22 details the top 15 military spenders worldwide, ranked using Market Exchange rates and Purchasing Power Parity rates. Main Findings MOD Conflict Prevention In 2006/07, the MOD spent nearly 1.8 billion on conflict prevention worldwide. The net additional cost incurred by the MOD as a result of operations in Iraq in 2006/07 was nearly 1 billion. NATO Countries Defence Expenditure USA, Turkey and Greece have the highest Estimated Total Defence Expenditure as a percentage of GDP for NATO Countries at 3.8%, 3.0% and 3.0% respectively. Top World-wide Military Spenders In 2006, total worldwide military expenditure is estimated to be US $1158 billion at 2005 prices and exchange rates. The USA is the world's largest military spender accounting for 46% of worldwide expenditure in In 2006, the UK is the second largest military spender, accounting for around 5% of worldwide military spend, behind the USA (using comparisons based on market exchange rates). The UK is fifth, based on purchasing power parity comparisons, after USA, China, India and Russia. Sources of international defence data International Defence statistics are available in a variety of publications and on a substantial number of websites. A selection of the sources, which may prove useful in making these sorts of comparisons are listed in the Bibliography and Useful Websites sections. The Defence Analytical Services Agency (DASA) has no control over the quality, reliability and coverage of data contained within these sources and does not endorse any specific output. Data provided in Tables 1.20, 1.21 and 1.22 fall outside the scope of National Statistics and as such, must be regarded as illustrative only. Limitations of international defence data Data on defence expenditure are associated with a number of limitations, which are of three main types: reliability, validity and comparability. The main problems associated with reliability stem from the limited and varying definitions of defence expenditure. The coverage of official data on defence expenditure varies significantly between countries and over time for the same country and, furthermore, in some countries actual expenditure may be very different from budgeted expenditure. These factors limit the utility of international defence expenditure. A second reason for their limited utility is the very nature of expenditure data. The fact that they are merely input measures gives them limited utility as an indicator of military strength or capability. In reality, the composition of military expenditure has a major impact on the military capability it provides, as does the technological level of military equipment, the state of maintenance and repair, and so on. The most appropriate use of defence and military expenditure data, even when reliably measured and reported, is therefore as an indicator of the economic resources consumed for military purposes. Comparisons of the defence spending of different countries confront two significant problems. Firstly while there are standard definitions of defence spending and accounting conventions used by the international organisations, principally the UN, not all countries record and publish their defence spending in accordance with such definitions and conventions. Secondly conversion into a common currency using market exchange rates (MER) tends to undervalue the currency and hence the scale of expenditure of lower income countries. Attempts are often made to circumvent this problem using purchasing power parity (PPP) measures. These use currency conversion rates which equalise the overall price of a bundle of goods and services in each country. However PPP

36 measures can be highly inaccurate because of the difficulty of allowing for differences in quality and devising appropriate and relevant "weighting" of individual goods and services. Civilian based PPPs may also not be representative of defence goods and services. While these problems are fairly insignificant in relation to the comparison of defence spending of NATO members in Tables 1.20 and 1.21, they are substantial in relation to the global comparison in Table Note on NATO definition of defence expenditure The NATO definition of defence expenditure differs from national definitions so the figures quoted may differ from those given in national budgets. Expenditure is included for countries that provide Military Assistance. Expenditure is not included for countries receiving assistance. The financial year has been designated by the year which includes the highest number of months. For example year 2000 represents 2000/01 for Canada and the United Kingdom and 1999/00 for the United States (where the financial year for United States runs from October through to September). Defence expenditures as of 2002 have been calculated on the basis of the revised NATO definition agreed in 2004, which excluded expenditure on Other Forces from the totals reported to NATO, except in the case of those elements of Other Forces which are structured, equipped and trained to support defence forces and which are realistically deployable. Most nations have reported defence expenditures according to this new definition, and in some cases (Greece, Hungary, Portugal and Turkey), this has resulted in a significant apparent decrease in defence expenditures. A few, however (France, Italy, Luxembourg and Netherlands), continue to have difficulty meeting this requirement and the data provided by these countries did not fully accord with the new NATO definition on defence expenditures. Consequently figures in Tables 1.20 & 1.21 for "NATO Total", "NATO Europe" and "North America" are only indicative.

37 Table 1.19 MOD Peacekeeping Costs Chapter 1 - Finance This table shows MOD Peacekeeping costs under the UK's cross-cutting initiative on Conflict Prevention from 2004/05 to 2006/07. These costs cover the net additional costs incurred by MOD as a result of major military operations: that is, those costs over and above those that the Department would have incurred had the operation not been undertaken. For example, expenditure on wages and salaries or savings from cancelled training exercises are deducted from the total cost of the operation. Current prices ( million) Resource DEL 1 Capital DEL 2 Total Outturn Outturn Outturn Total Peacekeeping Costs: Of which: Balkans (Bosnia/Kosovo) Afghanistan Iraq Total Peacekeeping Costs: Of which: Balkans (Bosnia/Kosovo) Afghanistan Iraq Total Peacekeeping Costs: Of which: Balkans (Bosnia/Kosovo) Afghanistan Iraq Source: MOD Annual Report and Accounts (2004/05, 2005/06 & 2006/07) 1. The principal costs relating to Peacekeeping included in the Resource DEL include manpower costs, accommodation costs (hire of buildings and sites), utilities, hire of vehicles including air and sea charter, stock consumption. 2. The principal cost relating to Peacekeeping included in the Capital DEL is the equipment required as Urgent Operational Requirements for operations in Iraq and Afghanistan.

38 Chapter 1 - Finance Table 1.20 NATO Countries Defence Expenditure This table shows defence payments accrued within financial years as extracted from the NATO website Figures are based on the NATO definition of defence expenditure and are stated at 2000 prices and exchange rates. The NATO definition of defence expenditure differs from national definitions so the figures quoted may diverge considerably from those given in national budgets. Expenditure is included for countries that provide Military Assistance. Expenditure is not included for countries receiving assistance. The financial year has been designated by the year which includes the highest number of months. For example year 2000 represents 2000/01 for Canada and the United Kingdom and 1999/00 for the United States (where the financial year for United States runs from October through to September). Defence expenditures as of 2002 have been calculated on the basis of the revised NATO definition agreed in Most nations have reported defence expenditures according to this new definition. A few, however, continue to have difficulty meeting this requirement. Consequently figures for "NATO Total", "NATO Europe" and "North America" for 2002 and 2003 are only indicative. Total figures for 2004 onwards are not calculated due to unavailability of exchange rate information for the countries new to the Alliance. More information on the new NATO definition can be found on the International Defence - Notes and Key Trends page. The data in this table are outside the scope of National Statistics because they are provided by an organisation outside the UK Government Statistical Service Prices and Exchange Rates Country Currency Unit (Million) Estimated 2006 NATO Total 1,2 US Dollars r r NATO - Europe 1,2,3 US Dollars r r Belgium Euro r r Bulgaria 4 Levas * * 823 r Czech Republic Czech Koruny r r r Denmark Danish Kroner r r Estonia 4 Kroonis * * r France 5 Euro r r r Germany Euro r r r Greece Euro r r r Hungary Forint r r r Italy Euro Latvia 4 Lats * * Lithuania 4 Litai * * 908 r Luxembourg Euro Netherlands Euro r Norway Norwegian Kroner r Poland Zlotys r r r Portugal Euro r r r Romania 4 Lei - New Lei 6 * * r Slovak Republic 4 Slovak Koruny * * r Slovenia 4 Tolars * * r Spain Euro r r r Turkey 1000 Turkish Liras-New Turkish Liras ll United Kingdom Pounds Sterling r r r North America 1,2 US Dollars r r Canada Canadian Dollars r r r United States US Dollars r r Source: NATO 1. France, Italy, Luxembourg and Netherlands figures are based on the old NATO definition of defence expenditure, whereas all the other countries are based on the new definition agreed by the member states in The NATO totals include all countries' expenditure regardless of which definition was used. 2. In the absence of NATO data expressed at 2000 exchange rates and prices for the 'NATO', 'NATO Europe' and 'North America' totals, the individual country totals (expressed in local currencies at 2000 prices) have been converted to US dollars using the 2000 exchange rate for each country supplied by the Bank of England. Where Bank of England data were not available, comparable dollar exchange rates have been sourced from the Pacific Exchange Rate Service ( 3. Iceland is a member of the Alliance but has no armed forces. 4. Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovak Republic, and Slovenia joined the Alliance in France is a member of the Alliance but does not belong to the integrated military structure and does not participate in collective force planning. The defence data relating to France are indicative only. 6. From 2005 onwards, monetary values for Romania and Turkey are expressed in new currency units.

39 Chapter 1 - Finance Table 1.21 NATO Countries Defence Expenditure as % of GDP This table shows defence payments accrued within financial years as a percentage of GDP. The figures are those extracted from the NATO website Figures are based on the NATO definition of defence expenditure and are stated at current prices. The NATO definition of defence expenditure differs from national definitions so the figures quoted may diverge considerably from those given in national budgets. Expenditure is included for countries that provide Military Assistance. Expenditure is not included for countries receiving assistance. The financial year has been designated by the year which includes the highest number of months. For example the year 2000 represents 2000/01 for Canada and the United Kingdom and 1999/00 for the United States (where the financial year for United States runs from October through to September). Defence expenditures as of 2002 have been calculated on the basis of the revised NATO definition agreed in Most nations have reported defence expenditures according to this new definition. A few, however, continue to have difficulty meeting this requirement. Total figures for 2004 onwards are not available. More information on the new NATO definition can be found on the Notes and Key Trends part of this section. The data in this table are outside the scope of National Statistics because they are provided by an organisation outside the UK Government Statistical Service. Current Prices Country Estimated 2006 NATO Total NATO - Europe 1, Belgium 1.2 r r Bulgaria 3 * * 2.6 r Czech Republic r Denmark 1.5 r Estonia 3 * * 1.6 r France Germany r Greece r Hungary 1.6 r Italy 2.0 r 2.0 r Latvia 3 * * Lithuania 3 * * Luxembourg Netherlands 1.5 r r Norway r Poland Portugal 1.5 r 1.5 r 1.6 r Romania 3 * * 2.0 r Slovak Republic 3 * * 1.7 r Slovenia 3 * * Spain 1.3 r 1.2 r 1.2 r Turkey United Kingdom North America Canada United States Source: NATO 1. France, Italy, Luxembourg and Netherlands figures are based on the old NATO definition of defence expenditure, whereas all the other countries are based on the new definition agreed by the member states in Iceland is a member of the Alliance but has no armed forces. 3. Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovak Republic and Slovenia joined the Alliance in France is a member of the Alliance but does not belong to the integrated military structure and does not participate in collective force planning. The defence data relating to France are indicative only.

40 Chapter 1 - Finance Table 1.22 Top World-wide Military Spenders: 2006 This table shows the Top 15 World-wide Military Spenders in Figures are in US billion Dollars and at 2005 Prices and Exchange Rates. Countries are ranked separately using Market Exchange Rates and Purchasing Power Parity (PPP rates). If a different base year were used, the rankings could change due to fluctuations in exchange rates. Conversion into a common currency using Market Exchange Rates (MER) tends to undervalue the currency and hence the scale of expenditure of lower income countries. Attempts are often made to circumvent this problem using Purchasing Power Parity (PPP) measures. These use currency conversion rates which equalise the overall price of a bundle of goods and services in each country. However PPP measures can be highly inaccurate because of the difficulty of allowing for differences in quality and devising appropriate and relevant "weighting" of individual goods and services. Civilian based PPPs may also not be representative of defence goods and services. As such, this table must be regarded as providing only an illustrative ranking of world-wide military spending. The data in this table are outside the scope of National Statistics because they are provided by an organisation outside the UK Government Statistical Service. US$ Billions at constant 2005 Prices and Exchange Rates Market Exchange Rates Purchasing Power Parity Rates 1 Spending Spending Per Capita World Share Spending Rank Country US$ Billions US$ % Rank Country US$ Billions 1 USA USA UK China [188.2] 3 France India China [49.5] [37] [4] 4 Russia [82.8] 5 Japan UK 51.4 Sub-total Top Sub-total Top Germany France Russia [34.7] [244] [3] 7 Saudi Arabia 2, Italy Japan Saudi Arabia 2, Brazil India Germany 31.2 Sub-total Top Sub-total Top South Korea South Korea Australia Iran Canada Italy Brazil Turkey Spain Pakistan 15.6 Sub-total Top Sub-total Top World Total World Total.. Source: Stockholm International Peace Research Institute (SIPRI) 1. The figures in PPP dollar terms are converted at PPP rates (for 2005), calculated by the World Bank, based on comparisons of gross national product. 2. Data for Iran and Saudi Arabia include expenditure for public order and safety and might be a slight overestimate. 3. The populations of Australia, Canada and Saudi Arabia each constitute less than 0.5% of the total world population. [ ] indicates SIPRI estimate

41 Chapter 2 - Personnel Introduction Chapter 2 is divided into six main sections: Personnel summary (Tables 2.1 to 2.6b) overall statistics relating to both civilians and Armed Forces personnel, including numbers overseas. A brief note on sources and methods is included with Table 2.1; UK Armed Forces (Tables 2.7 to 2.27) summaries of the main trends in strengths, intakes and outflows of personnel in the UK Armed Forces. A chart setting out the equivalent ranks in the Services and with civilians is included as Table 2.27; Civilian personnel (Tables 2.28 to 2.38) - summaries of the main trends in strengths, intakes and outflows of civilian personnel; War Pensions (Table 2.39) statistics on the numbers receiving various types of war pension; Compensation claims made against the MOD (Tables 2.40 and 2.41) statistics on the numbers of new and settled claims made against the MOD; International (Table 2.42) manpower holdings and ceilings by member countries of the Conventional Armed Forces in Europe (CFE) Treaty. Key Points and Trends Personnel Summary The number of Service personnel employed by the Ministry of Defence fell by 38 per cent between 1990 and 2007 (Table 2.1); over the same period the requirement for Service personnel fell by 40 per cent. The number of full-time equivalent civilians employed by the Ministry of Defence fell by 43 per cent (Table 2.1). The Defence Agency employing the largest number of civilians was the Ministry of Defence Police and Guarding Agency (7,800 FTE) (Table 2.6). UK Armed Forces The combined strength of the three forces has fallen by around 2.8 per cent since This largely reflects a fall in the trained strength of 5,390 (of which 3,400 was in the RAF), while untrained strength has remained relatively stable for all three Services. (Table 2.7); The proportion of serving personnel who were from the ethnic minorities stood at 5.8 per cent at 1 April 2007, and numbered an estimated 11,015 on a full coverage basis (Table 2.11), compared with 5.5 per cent and 10,815 a year previously; The proportion of Officers who are female rose to 11.6 per cent in 2007 compared with 11.3 per cent in 2006 and 6.5 per cent in The number of female Other Ranks rose to 8.8 per cent in 2007 compared with 8.7 per cent in 2006 and 5.6 per cent in (Table 2.12). Civilian personnel The Total civilian strength (Level 0) fell by about 5.7 per cent to 98,050 (FTE) between 1 April 2006 and 1 April 2007 (Table 2.1); Total Intake for the Financial Year 2006/07 was 5,360 FTE (Table 2.22); Total Outflow for the Financial Year 2006/07 was 9,930 FTE (Table 2.32). Compensation Claims made against the MOD Of just under 7,000 claims settled in 2006/07, 55 per cent were vehicle related (Table 2.41).

42 Chapter 2 - Personnel Table 2.1 Recent trends in Service and civilian personnel 1 numbers, at 1 April each year Sources and methods Armed Forces statistics to 2005 are compiled from pay records (Naval Service) or personnel records (Army and RAF) held by the Service Personnel and Veterans Agency (SPVA, formerly Armed Forces Personnel Administration Agency). In March 2006, work commenced to transfer all Service personnel records to a new Joint Personnel Administration (JPA) system. Statistics are compiled from JPA in the RAF from April 2006, in the Naval Service from November 2006 and in the Army from April All statistics before these points are derived from legacy systems. Due to ongoing data validation, Army statistics at 1 April 2007 are provisional and subject to review. For civilian reports, Level 1 is defined as civilian permanent and casual personnel employed by the Department and the Royal Fleet Auxiliaries. Level 0 is all those at Level 1 plus staff in the Trading Funds and Locally engaged civilians. Ethnic origin data are collected by voluntary surveys and are thus based on self-perception. In 2001/02 a re-survey of all Service and civilian personnel was begun so that the new classifications used in the 2001 Census of Population could be used. The new classifications are the basis for figures from 2002 onwards. Thousands: FTE Total personnel p Service p UK Regulars p FTRS p Gurkhas 3 } { p Locally entered/engaged Civilian Level 0 1, Level Trading Funds Locally engaged civilians Excluded from the above table: Royal Irish (Home Service) Source: DASA(Civilian) and DASA(Tri-Service) 1. Civilian Level 0 and Level 1 are defined in the Sources and methods section above. 2. Data for the updated definiton of civilians are not available for figures are as published in UK Defence Statistics Gurkhas are included in the locally entered service personnel figures until 1997 after which they are shown separately. 4. The following changes have affected the continuity of the civilian data: removal of GCHQ personnel from April 1994 and the contractorisation of the Atomic Weapons Establishment (6,000) in In 2001 the QinetiQ portion of the Defence Evaluation and Research Agency (8,000) was established as a private company. 5. Includes manually paid staff overseas until Due to ongoing validation of data from a new personnel administration system, Army statistics at 1 April 2007 are provisional and subject to review.

43 Table 2.2 Civilian personnel 1 by budgetary area, at 1 April 2007 Chapter 2 - Personnel Due to ongoing validation of data from a new personnel administration system, Service personnel figures broken down by budgetary area at 1 April 2007 are currently unavailable. Thousands: FTE Total Non-Industrial Industrial Grand Total 1, * * Royal Navy Areas Commander-in-Chief Fleet * * Fleet Royal Fleet Auxiliary Service * * Army Areas Commander-in-Chief Land Command Comd Regional Forces Field Army Joint Helicopter Command Land Support Adjutant General (Personnel and Training Command) AG Reporting MGS Army Personel Centre Defence Administration Group General Staff Service Children's Education Agency UK Schools Royal Air Force Areas 4 Air Officer Commanding-in-Chief HQ Air Command Defence Equipment & Support Defence Equipment & Support Defence Equipment Support Management Group Future Defence Supply Chain MOD Head Office, HQ and centrally managed expenditure Central TLB Chief of Defence Intelligence Defence Academy Defence Export Services Organisation Deputy Chief of the Defence Staff (Health) Finance Director Ministry of Defence Police and Guarding Agency Personnel Director Policy and Commitments Central Other Chief of Joint Operations Commander of British Forces Cyprus Commander of British Forces Falklands Commander of British Forces Gibraltar Permanent Joint Headquarters Defence Estates Science Innovation & Technology Unallocated Civilian Level * * MOD owned trading funds 2 Defence Science & Technology Laboratories 3.2 * * Meteorological Office 1.7 * * UK Hydrographic Office 1.0 * * Defence Aviation Repair Agency 2.1 * * Army Base Repair Organisation 2.1 * * Locally engaged civilians * * Grand Total 1, Source: DASA(Civilian) 1. Civilian Level 0 and Level 1 are defined in the Sources and methods section preceding Table A breakdown of industrial and non-industrial personnel is unavailable for Royal Fleet Auxiliary, Trading Funds and Locally engaged civilian personnel. 3. At 1 April 2007, GOC Northern Ireland ceased to be a TLB and all staff transferred into Land Command. 4. The Secretary for State for Defence announced on 14 March 2007, the amalgamation of RAF's Personnel and Training Command and Strike Command to form a single Air Command from 1 April At 1 April 2007, Chief of Defence Logistics and Defence Procurement Agency merged to form Defence Equipment & Support. 6. This budgetary area contains personnel from the newly created Service Personnel and Veterans Agency, formerly AFPAA and Veterans Agency and any residual personnel from Central closed budgetary areas.

44 Chapter 2 - Personnel Table 2.3 Location of Service and civilian personnel 1,2,3 in the United Kingdom At 1 July each year Thousands: FTE United Kingdom Service Civilian by country England Service Civilian Wales Service Civilian Scotland Service Civilian Northern Ireland Service Civilian Source: DASA (Civilian) and DASA (Tri-Service) Service and civilian personnel 1, 2, 3 by Government Office Region Service 1 Civilian Number: FTE At 1 April each year % change % change 6 United Kingdom e p * by Government Office Region 7 England e p -0.7 e North East e p -2.0 e North West e p -2.9 e Yorkshire and The Humber e p 4.7 e East Midlands e p 1.5 e West Midlands e p -3.3 e Eastern e p -5.0 e London e p -0.9 e South East e p 0.8 e South West e p -2.2 e Wales e p e Scotland e p -5.3 e Northern Ireland e p e Unallocated e p 7.4 e Royal Fleet Auxiliaries * * * Overseas e p -1.5 e Civilian Level 1 * * * Trading Funds * * * Trading Funds United Kingdom * * * Trading Funds Overseas * * * Trading Fund Unallocated * * * Locally engaged civilians * * * Civilian Level 0 * * * Source: DASA (Civilian) and DASA (Tri-Service) 1. Service personnel figures have been compiled from unit statistics related to unit postcodes. For some units, postcode information is either unavailable or inappropriate. 2. Service personnel figures are for UK Regular Forces, and therefore exclude Gurkhas, Full Time Reserve Service personnel, the Home Service battalions of the Royal Irish Regiment and mobilised reservists. 3. Civilian Level 0 and Level 1 are defined in the Sources and methods section preceding Table In 2001 the QinetiQ portion of the Defence Evaluation and Research Agency (8,000) was established as a private company. 5. Due to ongoing validation of data from a new personnel administration system, Service personnel figures at 1 April 2007 are unavailable and are therefore shown as at 1 January The United Kingdom % change figure is not applicable due to changes to the recording of unallocated personnel from 1 Jan Percentage change is calculated from unrounded data. 7. United Kingdom total and split by Government Office Region are for Level 1 MOD Civilian Personnel.

45 Chapter 2 - Personnel Table 2.4 Global locations of Service 1 and civilian personnel at 1 April each year Number: FTE Global Total II e.. Service Total II e p Civilian Level 0 Total United Kingdom Service II e p Civilian Overseas Total Service p Civilian Mainland European States II e.. Germany Service II e p Civilian Balkans 4 Service II e 10 p Civilian Remainder Service II e p Civilian r 230 Mediterranean II e.. Cyprus Service II e p Civilian Gibraltar Service II e 330 p Civilian Remainder 5 Service II e - p Civilian Middle East 6 Service II e 250 p Civilian Far East/Asia Service ll e 260 p Civilian Africa II e.. Sierra Leone Service II e 90 p Civilian Remainder Service II e 70 p Civilian North America II e.. USA Service II e 360 p Civilian Canada 7 Service II e 260 p Civilian Central/South America Service II e 100 p Civilian Falkland Islands Service II e 340 p Civilian Elsewhere 8,9 Service II e 110 p Civilian Unallocated II e.. Service II e p Civilian Royal Fleet Auxiliaries Civilian Source: DASA(Civilian) and DASA(Tri-Service) 1. Due to ongoing validation of data from a new personnel administration system, Service personnel figures at 1 April 2007 are unavailable and are therefore shown as at 1 January Data for the global locations of Service personnel were suspended between because of concerns over quality of the source data. Figures up to 2002 showed where Service personnel were deployed. From 2005 data show where Service personnel are based. 2. The following changes have affected the continuity of the civilian data: removal of GCHQ personnel from April 1994 and the contractorisation of the Atomic Weapons Establishment (6,000) in In 2001 the QinetiQ portion of the Defence Evaluation and Research Agency (8,000) was established as a private company. 3. Civilian Level 0 and Level 1 are defined in the Sources and methods section preceding Table Consists of Bosnia-Herzegovina, Croatia, the Former Yugoslav Republic of Macedonia, Kosovo, Montenegro, and Serbia. 5. Ships at sea in the Mediterranean not stationed at either Cyprus or Gibraltar. 6. Including Egypt, Iraq and Libya. Service personnel figures between include Naval Parties but excludes all other personnel deployed on operations figures exclude all personnel deployed on operations. 7. Excluding British troops training in Canada at the British Army Training Unit, Suffield. 8. Includes personnel in transit and those in any other geographic region that is not specifically identified above. 9. Information for some locally engaged civilians before 2001 are coded as Elsewhere.

46 Chapter 2 - Personnel Table 2.5 Strength of locally entered personnel, including Gurkhas by global location, at 1 April each year Number: FTE Total ll Naval Service Army of which Gurkhas Royal Air Force Civilian ll by location United Kingdom Army of which Gurkhas Continental Europe Civilian Mediterranean Gibraltar Army Civilian Malta Civilian Cyprus Civilian Far East Hong Kong Naval Service Army of which Gurkhas Civilian Brunei Army of which Gurkhas Civilian Nepal Army of which Gurkhas Civilian Elsewhere 290 } { Civilian Other areas Falkland Islands Army of which Gurkhas Elsewhere Civilian Source: DASA(Civilian) and DASA(Tri-Service) 1. Due to ongoing validation of data from a new personnel administration system, Service personnel figures for 1 April 2007 are unavailable and are therefore shown as at 1 March Gurkha figures prior to 2001 include 3 Officers and 9 Soldiers from the UK Regular forces. 3. Gibraltar Army figures comprise the Gibraltar Permanent Cadre and Gibraltar Volunteer Reserve. 4. From 1996, includes the locally employed dependents of Service personnel. 5. The increase in 2002 reflects the engagement of local personnel in Bosnia-Herzegovina and Kosovo and the increase in 2004 the engagement of personnel in Iraq.

47 Chapter 2 - Personnel Table 2.6 Civilian personnel 1 in UK Defence Agencies and MOD-owned Trading Funds by UK country, at 1 April 2007 Due to ongoing validation of data from a new personnel administration system, the number of Service personnel in UK Defence Agencies and Trading Funds at 1 April 2007 are currently unavailable. Number: FTE Grand Total England Scotland Wales N.Ireland Elsewhere Total Agencies and Trading Funds As a percentage of total MOD personnel in category Agencies 2, 3 Service Personnel And Veterans Agency 4 Total Non Industrial Industrial Defence Analytical Services Agency Total Non Industrial Industrial Defence Medical And Education Training Agency Total Non Industrial Industrial Defence Storage And Distribution Agency Total Non Industrial Industrial Defence Vetting Agency Total Non Industrial Industrial Ministry Of Defence Police And Guarding Agency Total Non Industrial Industrial People Pay And Pensions Agency Total Non Industrial Industrial Service Childrens Education Total Non Industrial Industrial Trading Funds 5,6 Army Base Repair Organisation Defence Aviation Repair Agency Defence Scientific And Technical Laboratories Meteorological Office UK Hydrographic Office MOD Total Excluding Agencies and Trading Funds Locally engaged civilians 5 Royal Fleet Auxiliary (RFA) staff Civilian Level 0 Total Source: DASA(Civilian) 1. Civilian Level 0 and Level 1 are defined in the Sources and methods section preceding Table Data are drawn from the Resource Accounting and Budgeting system. 3. The following Agencies formally ceased to be Defence Agencies as at 1st April 2007: British Forces Post Office, Defence Bills Agency, Defence Communications Service Agency, Defence Procurement Agency, Defence Transport And Movements Agency, Disposal Services Agency and The Duke of York Military School. 4. Armed Forces Personnel Administration Agency was formed in April On 1 April 2007 it merged with the Veterans Agency, renamed Service Personnel and Veterans Agency. 5. A breakdown of industrial and non-industrial personnel is unavailable for Royal Fleet Auxiliary, Trading Funds and Locally engaged civilian personnel 6. Data are drawn from personnel records. 7. Figures are individually rounded and may not sum precisely to the totals shown.

48 Chapter 2 - Personnel Table 2.7 Strength of UK Regular Forces by Service, and whether trained or untrained, at 1 April each year The strength of the UK Regular Armed Forces has fallen by just over a third since 1990, with the Royal Air Force falling the most (49%) and the Army the least (31%). The proportion of total strength that was untrained fell from about 9% in 1990 to under 5% in This figure then rose year on year to almost 12% in 2003, falling to 9% by This reflects the increased recruiting activity following the redundancy programmes of the early 1990's followed by a reduction in levels of recruitment since 2003 leading to a decrease in untrained strength. Thousands All Services p Officers p Other Ranks p Trained p Officers p Other Ranks p Untrained p Officers p Other Ranks p Naval Service r of which: Royal Marines Officers of which: Royal Marines Other Ranks r of which: Royal Marines Trained Officers Other Ranks Untrained Officers Other Ranks Army p Officers p Other Ranks p Trained p Officers p Other Ranks p Untrained p Officers p Other Ranks p Royal Air Force Officers Other Ranks Trained Officers Other Ranks Untrained Officers Other Ranks Source: DASA(Tri-Service) Figures are for UK Regular Forces, and therefore exclude Gurkhas, Full Time Reserve Service personnel, the Home Service battalions of the Royal Irish Regiment and mobilised reservists. Due to ongoing validation of data from a new personnel administration system, Army statistics at 1 April 2007 are provisional and subject to review.

49 Chapter 2 - Personnel Table 2.8 Strength of UK Regular Forces by age and rank at 1 April each year Officers r p by age: Under p r 120 p r p r p r p r p r p r p 50 and over r p Average age (years) p Other Ranks p by age: Under p p p p p p p p 50 and over p Average age (years) p Officers r p by rank 2 : Major General and above p Brigadier p Colonel p Lieutenant Colonel p Major p Captain p Lieutenant and below p Other Ranks p by rank 2 : Warrant Officer r p Staff Sergeant p Sergeant p Corporal ll r r r r r p Lance Corporal ll r r r r r p Private (including juniors) p Source: DASA(Tri-Service) Figures are for UK Regular Forces and therefore exclude Gurkhas, Full Time Reserve Service personnel, the Home Service battalions of the Royal Irish Regiment and mobilised reservists. 1. Includes 260 Naval Service personnel of unknown rank. 2. Figures are for paid rank. Includes the equivalent ranks for the Naval Service and RAF. See Table Royal Marines with a substantive rank of Marine but acting as Corporal have previously been recorded as having a paid rank of Corporal. These personnel are now recorded as paid rank Lance Corporal. The time series has been revised accordingly from 1 April 2002 onwards. Due to ongoing validation of data from a new personnel administration system, Army statistics at 1 April 2007 are provisional and subject to review.

50 Chapter 2 - Personnel Table 2.9 Full Time Trained Strength and Requirement 1 at 1 April each year All Services Officers Requirement p Strength p Surplus/Deficit p Surplus/Deficit as percentage of requirement p Other Ranks Requirement p Strength p Surplus/Deficit p Surplus/Deficit as percentage of requirement p Naval Service Officers Requirement Strength Surplus/Deficit Surplus/Deficit as percentage of requirement Other Ranks Requirement Army Strength r Surplus/Deficit r Surplus/Deficit as percentage of requirement Officers Requirement Strength p Surplus/Deficit p Surplus/Deficit as percentage of requirement p Other Ranks Requirement Strength p Surplus/Deficit p Surplus/Deficit as percentage of requirement p Royal Air Force Officers Requirement p Strength Surplus/Deficit p Surplus/Deficit as percentage of requirement p Other Ranks Requirement p Strength Surplus/Deficit p Surplus/Deficit as percentage of requirement p Source: DASA(Tri-Service) 1. The Full Time Trained Strength comprises Trained UK Regular Forces, Trained Gurkhas and FTRS (Full Time Reserve Service) personnel. They do not include the Home Service battalions of the Royal Irish Regiment or mobilised reservists. 2. FTRS Strength figures include Full Commitment (FC), Home Commitment (HC) and Limited Commitment (LC) individuals. For the RAF, FC individuals serve against the regular requirement whilst HC and LC individuals fill posts specifically for FTRS personnel. All Naval Service and Army FTRS personnel serve against the regular requirement. See Glossary of Terms and Abbreviations for further information. 3. The RAF manpower requirement has reduced in line with drawdown plans announced in July 2004, and it is forecast is that the revised RAF manpower requirement of 40,800 by April 2008 will be achieved. The RAF requirement at 1 April 2007 is currently provisional and subject to review. Due to ongoing validation of data from a new personnel administration system, Army statistics at 1 April 2007 are provisional and subject to review.

51 Chapter 2 - Personnel Table 2.10 Strength of UK Regular Forces by ethnic origin, Service and rank 1 at 1 April 2007 The definition of rank has changed from that used in previous editions of UK Defence Statistics. Figures are now shown for paid rank rather than substantive rank. This aligns the definition of rank with that used in Tables 2.8 and Ethnic minorities All White Ethnic Minorities Unknown 2 as a percentage 3 of Personnel Number Percent 3 Number Percent 3 Number Percent 3 total (exc. unknown) All Services p p 87.9 p p 5.4 p p 6.7 p 5.8 p Officers p p 89.4 p 730 p 2.3 p p 8.3 p 2.5 p Lieutenant Colonel & above p p 93.8 p 115 p 2.0 p 240 p 4.2 p 2.1 p Major & below p p 88.4 p 615 p 2.3 p p 9.2 p 2.6 p Other Ranks p p 87.6 p p 6.1 p p 6.4 p 6.5 p Sergeant & above p p 91.4 p 950 p 2.1 p p 6.4 p 2.3 p Corporal & below p p 86.0 p p 7.6 p p 6.3 p 8.2 p Naval Service Officers Commander & above Lieutenant Commander & below Other Ranks Petty Officer & above Leading Rate & below Army p p 86.7 p p 7.9 p p 5.4 p 8.4 p Officers p p 92.1 p 405 p 2.8 p 755 p 5.2 p 2.9 p Lieutenant Colonel & above p p 93.5 p 50 p 1.9 p 115 p 4.5 p 2.0 p Major & below p p 91.8 p 355 p 2.9 p 640 p 5.3 p 3.1 p Other Ranks p p 85.8 p p 8.8 p p 5.4 p 9.3 p Sergeant & above p p 90.1 p 555 p 2.5 p p 7.5 p 2.7 p Corporal & below p p 84.4 p p 10.8 p p 4.8 p 11.4 p Royal Air Force Officers Wing Commander & above Squadron Leader & below Other Ranks Sergeant & above Corporal & below Source: DASA(Tri-Service) Figures are for UK Regular Forces, and therefore exclude Gurkhas, Full Time Reserve Service personnel, the Home Service battalions of the Royal Irish Regiment and mobilised reservists. 1. Figures for All Services include equivalent ranks in the Naval Service and RAF. See Table Includes those with an unrecorded ethnic origin and non-responses. 3. Percentages are calculated from unrounded data. Due to ongoing validation of data from a new personnel administration system, Army statistics at 1 April 2007 are provisional and subject to review.

52 Chapter 2 - Personnel Table 2.11 Strength of UK Regular Forces by ethnic origin and rank 1 at 1 April each year The definition of rank has changed from that used in previous editions of UK Defence Statistics. Figures are now shown for paid rank rather than substantive rank, and historical figures have been revised accordingly. This aligns the definition of rank with that used in Tables 2.8 and White p Full coverage estimates r r r p Officers p Lieutenant Colonel & above p Major & below p Other Ranks p Sergeant & above p Corporal & below p Ethnic minorities p Full coverage estimates r p Officers p Lieutenant Colonel & above p Major & below p Other Ranks p Sergeant & above p Corporal & below p Unknown r p Officers p Lieutenant Colonel & above p Major & below p Other Ranks r p Sergeant & above p Corporal & below p Ethnic minorities as a percentage of total (excluding unknowns) 4 All p Officers p Lieutenant Colonel & above p Major & below p Other Ranks p Sergeant & above p Corporal & below p Source: DASA(Tri-Service) Figures are for UK Regular Forces, and therefore exclude Gurkhas, Full Time Reserve Service personnel, the Home Service battalions of the Royal Irish Regiment and mobilised reservists. 1. Figures include equivalent ranks in the Naval Service and RAF. See Table Full coverage estimates show the number of personnel in each ethnicity category that would be expected if ethnicity were known for all personnel. 3. Includes those with an unrecorded ethnic origin and non-responses. 4. Percentages are calculated from unrounded data. Due to ongoing validation of data from a new personnel administration system, Army statistics at 1 April 2007 are provisional and subject to review.

53 Chapter 2 - Personnel Table 2.12 Strength of UK Regular Forces by sex and rank 1 at 1 April each year Female Officers p by rank: Major General and above p Brigadier p Colonel p Lieutenant Colonel p Major p Captain p Lieutenant and below p Male Officers p by rank: Major General and above p Brigadier p Colonel p Lieutenant Colonel p Major p Captain p Lieutenant and below p Female Other Ranks p by rank: Warrant Officer p Staff Sergeant p Sergeant p Corporal ll p Lance Corporal ll r p Private (including juniors) p Male Other Ranks r p by rank: Warrant Officer p Staff Sergeant p Sergeant p Corporal ll r r r r r p Lance Corporal ll r r r r r p Private (including juniors) p Females as a percentage of total 4 Officers p by rank: Major General and above p Brigadier p Colonel p Lieutenant Colonel p Major p Captain p Lieutenant and below p Other Ranks p by rank: Warrant Officer p Staff Sergeant p Sergeant p Corporal ll 8.5 r 9.2 r 9.9 r 10.3 r 10.6 r 11.1 p Lance Corporal ll 9.2 r 9.4 r 9.0 r 9.3 r 9.5 r 9.1 p Private (including juniors) p Source: DASA(Tri-Service) Figures are for UK Regular Forces and therefore exclude Gurkhas, Full Time Reserve Service personnel, the Home Service battalions of the Royal Irish Regiment and mobilised reservists. 1. Figures are for paid rank. Includes the equivalent ranks in the Naval Service and RAF. See Table Includes 260 female Naval Officers of unknown rank. 3. Royal Marines with a substantive rank of Marine but acting as Corporal have previously been recorded as having a paid rank of Corporal. These personnel are now recorded as paid rank Lance Corporal. The time series has been revised accordingly from 1 April 2002 onwards. 4. Percentages are calculated from unrounded data. Figures fewer than 100 have been left unrounded so as not to obscure the data. Due to ongoing validation of data from a new personnel administration system, Army statistics at 1 April 2007 are provisional and subject to review.

54 Chapter 2 - Personnel Table 2.13 Strength of UK Regular Forces by sex and Service at 1 April each year Females: total r p Naval Service r Army p RAF Officers p Naval Service Army p RAF Other Ranks p Naval Service Army p RAF Males: total r p Naval Service r Army p RAF Officers p Naval Service Army p RAF Other Ranks r p Naval Service Army p RAF Females as a percentage of total p Naval Service Army p RAF Officers p Naval Service Army p RAF Other Ranks p Naval Service Army p RAF Source: DASA(Tri-Service) Figures are for UK Regular Forces (trained and untrained) and therefore exclude Gurkhas, Full Time Reserve Service personnel, the Home Service battalions of the Royal Irish Regiment and mobilised reservists. 1. Percentages are calculated from unrounded data. Due to ongoing validation of data from a new personnel administration system, Army statistics at 1 April 2007 are provisional and subject to review.

55 Chapter 2 - Personnel Table 2.14 Strength of the Reserve Forces at 1 April each year 1,2 Thousands Total Reserve Regular reserve Naval Service Royal Fleet Reserve of which mobilised Individuals liable to recall Army Army Reserve of which mobilised Individuals liable to recall Royal Air Force p Royal Air Force Reserve p of which mobilised p Individuals liable to recall p Volunteer reserve p Naval Service of which mobilised Army 5,6, of which mobilised Royal Air Force p of which mobilised p Source: DASA(Tri-Service) 1. Figures exclude FTRS personnel. 2. Due to ongoing validation of data from a new Personnel Administration System, 2007 data for Army are as at 1 March 2007, for the Naval Service Regular Reserve data are currently unavailable and for the RAF data are provisional and subject to review. 3. Royal Fleet Reserve - Naval and Royal Fleet Reserve - Marine. 4. Excludes University Royal Navy Unit personnel. 5. Includes the Ulster Defence Regiment prior to 1 July 1992, when it merged with the Royal Irish Rangers and became the Home Service element of the Royal Irish Regiment. Full details can be found in Table Between 1983 and 1993 includes the Home Service Force. 7. Includes Officer Training Corps and non-regular permanent staff. 8. Excludes University Air Squadron personnel.

56 Chapter 2 - Personnel Table 2.15 Strength of the cadet forces at 1 April each year Thousands Total cadet forces Naval Service Army Royal Air Force Source: DASA(Tri-Service) 1. The figures for each service include both single service cadet forces and an element of the Combined Cadet Force. Figures exclude officers, training and administrative staff except for Naval Service figures before 1993 where separate figures are not available. 2. Prior to 1993 includes officers and training staff.

57 Chapter 2 - Personnel Table 2.16 Intake to UK Regular Forces from civil life 1 by sex and Service 1990/ / / / / / /07 All Services r p Officers p Male p Female p Other Ranks p Male p Female p Naval Service r Officers of which: Royal Marines Male of which: Royal Marines Female of which: Royal Marines Other Ranks of which: Royal Marines Male of which: Royal Marines Female of which: Royal Marines Army p Officers p Male p Female p Other Ranks p Male p Female p Royal Air Force Officers Male Female Other Ranks Male Female Source: DASA(Tri-Service) Figures are for UK Regular Forces and therefore exclude Gurkhas, Full Time Reserve Service personnel, the Home Service battalions of the Royal Irish Regiment and mobilised reservists. 1. Includes trained entrants. Trained entrants are excluded from Tables 2.17 and Due to ongoing validation of data from a new personnel administration system, Army statistics for 2006/07 are provisional and subject to review.

58 Chapter 2 - Personnel Table 2.17 Intake to untrained strength of UK Regular Forces by ethnic origin and Service 2001/ / / / / /07 2 All Services r p Officers p White Ethnic minorities Unknown Other ranks r p White r p Ethnic minorities p of which: Commonwealth 'Block recruits' p Unknown p Naval Service r Officers r White r r.. Ethnic minorities.. 10 ~ Unknown r.. Other ranks r White r Ethnic minorities of which: Commonwealth 'Block recruits' Unknown Army p Officers p White p Ethnic minorities p Unknown ~ 5 ~ 10 p Other ranks p White p Ethnic minorities p of which: Commonwealth 'Block recruits' p Unknown ~ p Royal Air Force Officers White Ethnic minorities Unknown Other ranks White Ethnic minorities Unknown Ethnic minorities as a percentage 5 of total (exc. unknown) All personnel Officers Naval Service Army Royal Air Force Other ranks r Naval Service Army Royal Air Force Source: DASA(Tri-Service) Figures are for UK Regular Forces and therefore exclude Gurkhas, Full Time Reserve Service personnel, the Home Service battalions of the Royal Irish Regiment and mobilised reservists. 1. Due to the exercise to recode individuals in line with the new 2001 Population Census codes, ethnicity figures for 2001/02 are not available. 2. Ethnicity figures for Naval Service and RAF officers for 2006/07 are not available due to ongoing validation of data from a new personnel administration system. 3. Includes those with an unrecorded ethnic origin and non-responses. 4. Ethnic minorities recruited en bloc include Fijians, Vincencians and St Lucians for 2002/03 and 2003/04. From April 2004, only Fijians are included. From April 2006 there are no block recruits. 5. Percentages are calculated from unrounded data. 6. Excludes Fijians, Vincencians and St Lucians recruited en bloc. Due to ongoing validation of data from a new personnel administration system, Army statistics for 2006/07 are provisional and subject to review.

59 Chapter 2 - Personnel Table 2.18 Intake to untrained strength of UK Regular Forces by sex and Service 1997/ / / / / /07 Females: total p Officers: total r p Naval Service Army p Royal Air Force Other ranks: total p Naval Service Army p Royal Air Force Males: total p Officers: total p Naval Service Army p Royal Air Force Other ranks: total p Naval Service Army p Royal Air Force Females as a percentage of total p Officers: total p Naval Service r Army p Royal Air Force Other ranks: total p Naval Service Army p Royal Air Force Source: DASA(Tri-Service) UK Regular Forces includes Nursing services and excludes Full Time Reserve Service personnel, Gurkhas, the Home Service battalions of the Royal Irish Regiment and mobilised reservists. Due to ongoing validation of data from a new personnel administration system, Army statistics for 2006/07 are provisional and subject to review.

60 Chapter 2 - Personnel Table 2.19 Gains to trained strength 1 of UK Regular Forces by Service 2002/ / / / /07 All Services p Officers: total p Naval Service Army p Royal Air Force Other ranks: total p Naval Service Army p Royal Air Force Source: DASA(Tri-Service) UK Regular Forces includes Nursing services and excludes Full Time Reserve Service personnel, Gurkhas, the Home Service battalions of the Royal Irish Regiment and mobilised reservists. 1. Gains to Trained Strength (GTS) represent those who are added to the trained strength, usually having just completed their training and thus transferring from the untrained strength. However, because of the nature of the data we draw from, this has had to be inferred by adding trained outflow to the net change in trained strength. Personnel who have transferred from the untrained to trained strength and back again (or vice versa) within the period shown are thus excluded. Direct entries to the trained strength are included in GTS, such as trained re-entrants, Professionally Qualified Officers (PQO) and FTRS. Fluctuations in GTS reflect changes in GTS targets as well as the degree of success in meeting them. Due to ongoing validation of data from a new personnel administration system, Army statistics for 2006/07 are provisional and subject to review.

61 Chapter 2 - Personnel Table 2.20 Outflow 1 from UK Regular Forces by Service and whether trained or untrained 1990/ / / / / / /07 All Services p Officers r p Trained p as a percentage of trained strength p Untrained p Other ranks p Trained p as a percentage of trained strength r 11.4 p Untrained p Naval Service r Officers Trained as a percentage of trained strength Untrained Other ranks Trained r as a percentage of trained strength r Untrained Army p Officers p Trained p as a percentage of trained strength p Untrained p Other ranks p Trained p as a percentage of trained strength p Untrained p Royal Air Force Officers Trained as a percentage of trained strength Untrained Other ranks Trained as a percentage of trained strength Untrained Source: DASA(Tri-Service) Figures are for UK Regular Forces and therefore exclude Gurkhas, Full Time Reserve Service personnel, the Home Service battalions of the Royal Irish Regiment and mobilised reservists. 1. Does not include promotion to Officer from Other Ranks. 2. From 1997/98, Army Officer outflow figures include miscellaneous outflow. 3. Calculated as a percentage of the average trained strength over the year. Due to ongoing validation of data from a new personnel administration system, Army statistics for 2006/07 are provisional and subject to review.

62 Chapter 2 - Personnel Charts to Tables 2.16 & 2.20 Intake and Outflow of UK Regular Forces Table 2.16 shows recent trends in the intake from civil life to the Services. Intake of Officers during 2006/07 was up 4 per cent on the previous year and 14 per cent down on the 2002/03 figure. Other Ranks intake during 2006/07 was up 9 per cent on the previous year and was 26 per cent down on the 2002/03 figure. Table 2.20 shows recent trends in the outflow of both trained and untrained personnel from the Services. It shows that between 9 and 17 per cent of Officer outflow and between 23 and 31 per cent of Other Ranks outflow was from the untrained strength between 2002/03 and 2006/07. Intake and Outflow of UK Regular Officers Intake and Outflow of UK Regular Other Ranks

63 Chapter 2 - Personnel Table 2.21 Outflow 1 from trained UK Regular Forces by Service and ethnic origin / / / / / /07 All Services p Officers p White p Ethnic minorities p Unknown p Other ranks p White p Ethnic minorities p Unknown p Naval Service Officers White Ethnic minorities ~ 5 10 Unknown Other ranks r White Ethnic minorities Unknown Army p Officers p White p Ethnic minorities p Unknown 4 ~ p Other ranks p White p Ethnic minorities p Unknown p Royal Air Force Officers White Ethnic minorities Unknown 4 ~ Other ranks White Ethnic minorities Unknown Ethnic minorities as a percentage 5 of total (excluding Unknown) All personnel p Officers p Naval Service ~ Army p Royal Air Force Other ranks p Naval Service Army p Royal Air Force Source: DASA(Tri-Service) Figures are for UK Regular Forces and therefore exclude Gurkhas, Full Time Reserve Service personnel, the Home Service battalions of the Royal Irish Regiment and mobilised reservists. 1. Does not include promotions to Officer from Other Ranks. 2. In 2001/02 a re-survey of all Service personnel was undertaken so that the new ethnicity classifications used in the 2001 Census of Population could be used. These classifications are the basis of the figures from 2002 onwards. 3. From 1997/98, Army Officer outflow figures include miscellaneous outflow. 4. Includes those with an unrecorded ethnic origin and non-responses. 5. Percentages are calculated from unrounded data. Due to ongoing validation of data from a new personnel administration system, Army statistics for 2006/07 are provisional and subject to review.

64 Chapter 2 - Personnel Table 2.22 Outflow 1 from trained UK Regular Forces by sex and reason for leaving 1990/ / / / / / /07 2 All trained personnel r p Trained officers p Male p Age, option point and time Full career: age Full career: option point Short career: time Short career: option Redundancies Voluntary Outflow Medical reasons and death Other reasons 8, Female p Age, option point and time Full career: age Full career: option point Short career: time Short career: option Redundancies Voluntary Outflow Medical reasons and death Other reasons 8, Trained other ranks r p Male r p End of engagement Redundancies Voluntary Outflow Service no longer required, disciplinary and other reasons r.. Medical reasons and death Compassionate release Female p End of engagement Redundancies Voluntary Outflow of which: Marriage Pregnancy Service no longer required, disciplinary and other reasons Medical reasons and death Compassionate release Source: DASA(Tri-Service) Figures are for UK Regular Forces and therefore exclude Gurkhas, Full Time Reserve Service personnel, the Home Service battalions of the Royal Irish Regiment and mobilised reservists. 1. Does not include promotions to Officer from Other Ranks. 2. Due to ongoing validation of data from a new personnel administration system, breakdowns of outflow by exit reason for 2006/07 are not currently available. 3. Due to the introduction of a new Personnel Administration System, there are no breakdowns of this category available from 1 April Naval Service: completion of Full Term Commission; Army: completion of Regular Career Commission; RAF: exit at Normal Retirement Date. 5. Naval Service: completion of Career Commission; Army: completion of Intermediate Regular Commission; RAF: exit at Initial or Optional Retirement Date (typically aged years). 6. Naval Service: completion of an Initial Commission (Short Career Commission before 1999); Army/RAF: Short Service Commission. 7. RAF only: 8 year break-point in Short Service Commission or 8 or 12 year breakpoint in other commissions. 8. Includes dismissal. 9. From 1997/98, Army Officer outflow figures include miscellaneous outflow. Due to ongoing validation of data from a new personnel administration system, Army statistics for 2006/07 are provisional and subject to review.

65 Chapter 2 - Personnel Table 2.23 Outflow 1 from UK Regular Forces by sex and Service 1990/ / / / / / /07 Females: total p Officers: total p Naval Service Army p Royal Air Force Other ranks: total p Naval Service Army p Royal Air Force Males: total r p Officers: total p Naval Service r Army p Royal Air Force Other ranks: total r p Naval Service Army p Royal Air Force Females as a percentage of total p Officers: total p Naval Service r Army p Royal Air Force Other ranks: total p Naval Service Army p Royal Air Force Source: DASA(Tri-Service) Figures are for UK Regular Forces and therefore exclude Gurkhas, Full Time Reserve Service personnel, the Home Service battalions of the Royal Irish Regiment and mobilised reservists. 1. Figures do not include promotions to Officer from Other Ranks. 2. From 1997/98, Army Officer outflow figures include miscellaneous outflow. Due to ongoing validation of data from a new personnel administration system, Army statistics for 2006/07 are provisional and subject to review.

66 Chapter 2 - Personnel Deaths in the Regular Armed Forces Tables 2.24 and 2.25 show the numbers who died in the Regular Armed Forces analysed by Service and by cause. Deaths In 2006, 190 deaths were recorded in the Regular Armed Forces (including Gurkhas) among currently serving personnel, compared with 158 in 2005 and 164 in 1997 (Table 2.24). The death rate among the Regular Armed Forces was 96 per 100,000 in 2006 compared with 81 per 100,000 in 1997 (see chart to Table 2.24). Throughout the ten-year period 1997 to 2006, the rate has remained below that recorded for the UK population as a whole, once allowance has been made for the different age and sex composition of the Armed Forces. This largely reflects the stringent fitness criteria for entry into the Services. The biggest single cause of death in 2006 was land traffic accidents (59 deaths, 32 per cent of the total). 33 people (17 per cent of deaths) were killed in action, 14 people (7 per cent of deaths) died of their wounds, and other injuries accounted for 36 deaths (19 per cent) (Table 2.25). Two people (1 per cent of deaths) were recorded as suicides. Sources and methods Information on deaths is compiled from three sources: signals sent from each of the Services via the Joint Casualty and Compassionate Cell (JCCC); pay and personnel systems and medical documents, including death certificates and reports of coroners' inquests (or, in Scotland, investigations by the Procurator Fiscal). These sources are cross-checked to ensure data quality and completeness. Figures include deaths on and off duty and both trained and untrained personnel. There is often a time lag of several months before information on coroners' verdicts for suicide and open verdict deaths reaches DASA, and so data for 2006 were not complete at the time the figures were compiled. In March 2007, DASA released a separate analysis of suicides and open verdict deaths within the Regular Armed Forces for the period 1984 to This analysis, by sex, age and service, may be found on the DASA web site at: Causes of death from disease and injury are coded according to the International Statistical Classification of Diseases and Related Health Problems (ICD), version 10. To identify combat related fatalities DASA also record the casualty reporting categories used by the JCCC, used for reporting to the Chain of Command and for notifying next of kin. In cases of multiple cause of death, only the main cause is presented here. Standardised death rates for the Services are calculated using a fixed age and sex structure over the whole period, in this case that for This eliminates changes in death rates caused simply by changes in the age and sex structure of the Services, and reveals the underlying picture, by enabling year-on-year overall comparisons and among the single Services. The UK population death rates used for the chart have used these same age and sex proportions to give a comparable rate: the rate for 2006 is a projection based on 2005 figures, pending the publication of more complete information.

67 Chapter 2 - Personnel Table 2.24 Deaths of UK Regular Forces personnel by Service, 1997 to 2006, numbers and rates Numbers of deaths Total Naval Service Army Royal Air Force Death rates per 100,000 strength 2 Total Naval Service Army Royal Air Force Source: DASA(Health) 1. Includes Gurkhas. 2. The rates for each year have been standardised to the 2005 tri-service strength. Death rates of UK Regulars by Service and compared with the UK population

68 Chapter 2 - Personnel Table 2.25 Causes of deaths of UK Regular Forces personnel in 2006, numbers and rates Numbers of deaths Death rates per 100,000 strength All 1 Naval Service Army 1 Royal Air Force All 1 Naval Service Army 1 Royal Air Force Total Disease-related conditions of which: Cancers Diseases of the circulatory system Other diseases External causes of injury and poisoning Deaths due to accidents Road Traffic Accidents Other injuries Deaths due to violence Killed in Action Died of Wounds Other Suicide Cause not currently available Source: DASA(Health) 1. Includes Gurkhas. 2. Cause and circumstance of death have been coded to the International Statistical Classification of Diseases and Related Health Problems (ICD), version Malignant, in situ and benign neoplasms. 4. Includes deaths due to heart disease and due to cerebrovascular disease. 5. Combat related fatalities have been coded according to the categories used by the Joint Casualty and Compassionate Cell for notifying Chain of Command and next of kin. Deaths by selected causes in 2006

69 Chapter 2 - Personnel Table 2.26 Military salaries: illustrative rates and indices (1990/91=100) 1990/ / / / / / /08 Military salaries Index 1 : all ranks Senior officers (Major General and above) Officers (up to Brigadier) Other ranks (Sergeant and above) Other ranks (up to Corporal) Illustrative rates 3 of annual military salary (in terms of Army ranks) Pay 2000 Pay System 4 General Level , , , , , ,370 Brigadier Level ,307 77,929 79,891 82,289 84,757 87,614 Colonel Level ,473 63,614 65,218 67,175 69,189 71,522 Lieutenant Colonel Level ,681 60,723 62,254 64,123 66,047 68,273 Major Level ,297 46,874 48,056 49,498 50,983 52,702 Captain Level ,832 31,904 32,708 33,690 34,701 35,870 Lieutenant Level ,667 25,525 26,167 26,952 27,762 28,698 2nd Lieutenant Level ,495 20,174 20,681 21,301 21,940 22,680 Warrant Officer I Level 4 H.. 35,197 36,424 37,343 38,464 39,617 40,953 Warrant Officer II Level 6 H.. 32,821 33,965 34,821 35,865 36,942 38,187 Staff Sergeant Level 6 L.. 29,262 30,879 31,656 32,605 33,584 34,716 Sergeant Level 5 H.. 28,167 29,148 29,883 30,780 31,704 32,773 Corporal Level 3 H.. 24,039 24,877 25,503 26,269 27,057 27,969 Lance Corporal Level 5 H.. 19,068 19,731 20,228 20,834 21,458 22,182 Private Level 1 L.. 12,578 13,081 13,461 13,866 14,323 15,677 Source: DASA(Pay & Pensions) 1. Indices are based on average daily rates of pay during the year. The indices are based on rank weights taken at 1 May The discontiuity indicated between 1990/91 and 2002/03 actually refers specifically to a discontinuitty between 2000/01 and 2001/02, and is due to the introduction of a new pay system - Pay The resulting changes to the structure of military salaries meant that individual pay rates could not be tracked over this period. Therefore, pay level weights within rank groups differ prior to 2001/ Equivalent ranks in the Naval Service and Royal Air Force are shown in Table The illustrative rates of annual military salary are calculated using the Pay Review Bodies' figures for the appropriate year. The rate shown for each rank is the pay level with the largest number of people at 1 May In the course of 2001/02, Pay 2000 was introduced for officers and other ranks. For other ranks this involved the introduction of Higher (H) and Lower (L) incremental pay ranges to which personnel are assigned in accordance with their trade. This replaced the old spot rate system with length of service increments, where other ranks would remain on the same pay point unless, or until, they were promoted. Under the new system personnel progress annually subject to satisfactory performance.

70 Chapter 2 - Personnel Table 2.26 Military salaries: illustrative rates and indices Real Growth 1 of miltary salaries and average earnings 2 Source: DASA(Pay & Pensions) 1. Real growth in salaries is growth over and above inflation. It represents the increase in purchasing power between one year and the next. For example, if salaries grew by 2%, but prices rose by 1%, real salary growth would be about 1%, because someone earning that salary could purchase around 1% more goods and services. Real pay growth can be negative if inflation is outstripping salary growth, values at 0% indicate an increase in line with inflation. The measure of inflation used here is growth in Retail Price Index (RPI). 2. Overall, real growth in military salaries follows a similar path to that of average earnings. However, there is a noticeable peak in 1991/92. This increase is partly a consequence of the previous year's pay award being staged but also includes increases to X Factor and a change in the pension abatement. Due to the discontinuity in the military salaries index between 2000/01 and 2001/02 it is not possible to calculate a pay increase over this period. Any increase over this period would include the effects of the introduction of Pay 2000.

71 Chapter 2 - Personnel Table 2.27 NATO Rank Codes and UK Service Ranks NATO Code Royal Navy 1 Royal Marines 2 Army Royal Air Force Officers OF-10 Admiral of the Fleet - Field Marshal Marshal of the RAF OF-9 Admiral General General Air Chief Marshal OF-8 Vice Admiral Lieutenant General Lieutenant General Air Marshal OF-7 Rear Admiral Major General Major General Air Vice-Marshal OF-6 Commodore Brigadier Brigadier Air Commodore OF-5 Captain Colonel Colonel Group Captain OF-4 Commander Lieutenant Colonel Lieutenant Colonel Wing Commander OF-3 Lieutenant Commander Major Major Squadron Leader OF-2 Lieutenant Captain Captain Flight Lieutenant OF-1 Sub-Lieutenant Lieutenant/2nd Lieutenant Lieutenant/2nd Lieutenant Flying Officer/Pilot Officer OF(D) Midshipman - Officer Cadet Officer Designate Other Ranks OR-9 Warrant Officer Class 1 Warrant Officer Class 1 Warrant Officer Class 1 Warrant Officer OR-8 Warrant Officer Class 2 Warrant Officer Class 2 Warrant Officer Class 2 - OR-7 Chief Petty Officer Colour Sergeant Staff Sergeant Flight Sergeant/ Chief Technician OR-6 Petty Officer Sergeant Sergeant Sergeant OR-4 Leading Rate Corporal Corporal Corporal OR-3 - Lance Corporal Lance Corporal - OR-2 Able Rating 3 Marine 3 Private (Classes 1 to 3) Junior Technician/ Leading Aircraftman/ Senior Aircraftman OR Private (Class 4)/Junior Aircraftman Source: DGMO 1. The Royal Navy introduced a Warrant Officer Class 2 on 1 April Royal Marine officer ranks were aligned with those of the Army on 1 July The rates of Able Rating and Ordinary Seaman were merged on 1 April 1999 as were the corresponding ranks of Marine 1st class and Marine 2nd class. The ranks of Junior Rating and Junior Marine were also abolished. Civilian equivalents to military ranks NATO Code Ministry of Defence civilian grade equivalent OF-10 OF-9 OF-8 SCS 1 3-star 2 OF-7 SCS 1 2-star 3 OF-6 SCS 1 1-star 4 - Band B1 5 OF-5 Band B2 6 OF-4 Band C1 7 OF-3 Band C2 8 } Permanent Under Secretary/ 2nd Permanent Under Secretary OF-2 Band D 9 Source: DGMO/MDP 1. Senior Civil Service. 2. Formerly Grade 2, Deputy Under Secretary. 3. Formerly Grade 3, Assistant Under Secretary. 4. Formerly Grades 4 and 5, Executive Director and Assistant Secretary. 5. Formerly Grade 6, Senior Principal Officer and equivalents. 6. Formerly Grade 7, Principal Officer and equivalents. 7. Formerly Senior Executive Officer and equivalents. 8. Formerly Higher Executive Officer and equivalents. 9. Formerly Executive Officer and equivalents.

72 Chapter 2 - Personnel Civilian Personnel Key Points and Trends General The number of Level 0 civilian personnel fell by 5,880 FTE between 1 April 2006 and 1 April 2007 from 103,930 to 98,050. There has been a continued decline in the number of permanent industrial staff over the last six years. At 1 April 2007, 12,980 permanent Level 1 industrial civilian personnel were employed by the Department compared to 23,280 at 1 April Top Level Budgetary Structure (TLB) On 1 April 2007 i) The Defence Logistics Organisation (DLO) and the Defence Procurement Agency (DPA) combined to form Defence Equipment & Support(DE & S). ii) HQ Strike Command (HQ STC) and RAF Personnel & Training Command (RAF P&T CMD) combined to form the new Head Quarters Air Command. iii) General Officer Commanding Northern Ireland (GOC NI) ceased to be a TLB area and the personnel transferred to the Land Command TLB. Defence Agencies On 1 April 2007, several of last year's MOD Defence Agencies lost their Agency status (British Forces Post Office, Defence Bills Agency, Defence Communications Service Agency, Defence Estates, Defence Procurement Agency, Defence Transport and Movements Agency, Disposal Services Agency, Duke of York's Royal Military School). At 1 April 2007, 26 per cent of the civilian personnel were employed in Agencies. Location At 1 April 2007, 68,230 FTE Level 1 civilian personnel were employed in the United Kingdom, a drop of 4,280 personnel since 1 April At 1 April 2007 the Department employed 3,560 civilian Agency employees and 1,740 civilian Trading Fund staff outside England. The number of Locally engaged civilian (LEC) personnel fell to around 14,000 at 1 April 2007, 75 per cent of LECs were employed in Europe including the Balkans. Diversity Overall, the percentage of civilian personnel (whose ethnicity is known) made up by ethnic minorities rose slightly from 2.9 per cent to 3.0 per cent between 1 April 2006 and 1 April By grade, the largest increase in the proportion of ethnic minority staff was in Band B, where the proportion increased from 2.3 per cent to 2.5 per cent. The number of civilian staff in the Department at 1 April 2007 who had declared a disabled status was 3,320 (5.5 per cent). Staff at Band D level had the highest percentage of self declared disabled personnel (6.4 per cent). At 1 April 2007, 36 per cent of civilian personnel were female (excluding Royal Fleet Auxiliary and Locally engaged civilian personnel), with 83 per cent of staff working part-time hours being female. At 1 April 2007, about 31,000 (37 per cent) of civilian personnel are aged 50 and above (excluding Royal Fleet Auxiliary and Locally engaged civilian personnel), At 1 April 2007 about 7,800 (9 per cent) of civilian personnel are working part-time hours. The largest proportion of part-time staff was at Band E level (43 per cent). Sickness Absence The level of sickness absence per non-industrial FTE member of staff fell from 8.55 working days in calendar year 2005 to 8.04 in 2006, remaining fairly constant at 8.03 for the financial year ending 31 March The rate for industrial staff fell from days per FTE member of staff in calendar year 2005 to in 2006, increasing to for the financial year ending 31 March The rates quoted above use the Cabinet Office cross-governmental definition which has replaced the previously used Ministry of Defence definition. Rates are higher using the Cabinet Office definition because all working days logged are included except for those falling on bank holidays. The Ministry of Defence definition used more complicated validation algorithms to discount absences that may have been misreported. An improvement in data quality mean this is no longer necessary and DASA has now adopted the simpler cross-governmental definition of sickness absence. Intake / Outflow In line with current departmental Civilian Rundown, inflow for 2006/07 (5,360) has reduced again when compared with 2005/06 (5,950). Similarly, levels of outflow in 2006/07 (9,930) have increased when compared with 2005/06 (9,660). The proportion of staff recruited who self-declared as being from an ethnic minority during 2006/07 was 5.6 per cent.

73 Chapter 2 - Personnel Table 2.28 Civilian personnel 1 by broad category, at 1 April each year Thousands: FTE Level 0 Civilian Level 1 Civilian Trading Funds Locally engaged civilians Level 1 Civilian - Permanent Non-industrial Industrial Level 1 Civilian - Casual Non-industrial Industrial Level 1 Civilian - Royal Fleet Auxiliary Trading Funds Permanent Casual Locally engaged civillians Source: DASA(Civilian) 1. Civilian Level 0 and Level 1are defined in the Sources and methods section preceding Table From 1 April 1995 the method of counting part-time staff changed to reflect the actual hours worked (about 60 per cent of full-time hours, on average) rather than the notional 50 per cent used previously. Figures from 1996 onwards include locally employed dependents of service personnel. 3. During 2004/05, 1,040 Firefighters who were shown as non-industrial at April 2004 were reclassified to industrial. 4. The following changes have affected the continuity of the civilian data: removal of GCHQ personnel from April 1994 and the contractorisation of the Atomic Weapons Establishment (6,000) in In 2001 the QinetiQ portion of the Defence Evaluation and Research Agency (8,000) was established as a private company. 5. Includes manually paid staff overseas until Casual staff are usually engaged for less than 12 months. Civilian Personnel 1993 to 2007

74 Chapter 2 - Personnel Table 2.29 Civilian personnel 1 by budgetary area and grade equivalence, at 1 April each year Number: FTE Grade Total Ministry of Defence Senior Civil Service and Equivalent Pay Band B Pay Band C Pay Band D Pay Band E Other non-industrial Industrial Trading Fund Staff Royal Fleet Auxiliaries Locally engaged civilians Royal Navy Areas Pay Band C and above Pay Band D and below Other non-industrial Industrial Royal Fleet Auxiliaries Army areas Pay Band C and above Pay Band D and below Other non-industrial Industrial Royal Air Force Areas Pay Band C and above Pay Band D and below Other non-industrial Industrial Defence Equipment & Support 7 * Pay Band C and above * Pay Band D and below * Other non-industrial 5 * Industrial * Centre Pay Band C and above Pay Band D and below Other non-industrial Industrial Other Pay Band C and above Pay Band D and below Other non-industrial Industrial Source: DASA(Civilian) 1. Civilian Level 0 and Level 1are defined in the Sources and methods section preceding Table Grade equivalence is shown in terms of the broader banding structure and is based on paid grade. 3. In 2001 the QinetiQ portion of the Defence Evaluation and Research Agency (8,000) was established as a private company. 4. Includes about 50 personnel outside the Senior Civil Service but of equivalent grade. 5. Includes industrial staff on temporary promotion to non-industrial grades and staff for whom no grade information is available. 6. Locally engaged civillians and manuals cannot be split by budgetary area, so are only included in the Ministry of Defence total. 7. Defence Equipment & Support formed in 2007 by merging the Defence Logistics Organisation and Defence Procurement Agency. For consistency information in this table has been merged across the series between 2002 and Staff for whom no Top Level Budget (TLB) information is available are included in this section of the Table.

75 Chapter 2 - Personnel Table 2.30 Strength of civilian personnel 1 by ethnic origin and grade 2, at 1 April each year Headcount Total Ministry of Defence Level II White II Senior Civil Service and equivalent II Pay Band B II Pay Band C II Pay Band D II Pay Band E II Other non-industrial 6 - II Industrial 7 - II Trading Fund Staff II Ethnic Minorities II Senior Civil Service and equivalent 5 10 II Pay Band B 40 II Pay Band C 160 II Pay Band D 220 II Pay Band E 760 II Other non-industrial 6 - II Industrial 7 - II Trading Fund Staff 150 II Unknown II Senior Civil Service and equivalent 5 40 II Pay Band B 260 II Pay Band C II Pay Band D II Pay Band E II Other non-industrial 6 70 II Industrial II Royal Fleet Auxiliary (RFA) II Locally engaged civilians and manuals II Trading Fund Staff II Ethnic minorities as a percentage of total excluding unknown All grades 2.0 II Senior Civil Service and equivalent II Pay Band B 1.9 II Pay Band C 1.2 II Pay Band D 1.6 II Pay Band E 2.5 II Other non-industrial 6 - II Industrial 7 - II Trading Fund Staff 1.8 II Source: DASA(Civilian) 1. Civilian Level 0 and Level 1are defined in the Sources and methods section preceding Table Grade equivalence is shown in terms of the broader banding structure and is based on paid grade. 3. In 2001/02 a re-survey of Civilian personnel was undertaken so that the new classifications used in the 2001 Census of Population could be used. In 2001 the QinetiQ portion of the Defence Evaluation and Research Agency (8,000) was established as a private company. 4. Ethnic origin data are collected by voluntary surveys or self declaration and are thus based on self-perception. 5. The Senior Civil Service was formed in The totals include about 50 personnel outside the Senior Civil Service but of equivalent grade. 6. 1,040 Firefighters who were shown as non-industrial in April 2004 have been reclassified to industrial grades. 7. No ethnicity data is available for the industrial personnel before Those for whom there is no computerised record of their ethnic origin, including those who refused to reply to the relevant survey.

76 Chapter 2 - Personnel Table 2.31 Strength of civilian personnel 1 by sex, grade 2 and whether full or part-time, at 1 April each year Headcount Sex, part time/full time and grade Female: full-time II Senior Civil Service and equivalent Pay Band B Pay Band C Pay Band D Pay Band E Other non industrials 5, Industrial Trading Funds II Male : full-time II Senior Civil Service and equivalent Pay Band B Pay Band C Pay Band D Pay Band E Other non industrials 5, Industrial Trading Funds II Female: part-time II Senior Civil Service and equivalent Pay Band B Pay Band C Pay Band D Pay Band E Other non industrials 5, Industrial Trading Funds 420 II Male: part-time 500 II Senior Civil Service and equivalent Pay Band B Pay Band C Pay Band D Pay Band E Other non industrials 5, Industrial Trading Funds 120 II Total Male II Total Female II Civilian Level II Full time II Part time II Royal Fleet Auxiliaries Locally engaged eivilians 7, Source: DASA(Civilian) 1. Civilian Level 0 and Level 1are defined in the Sources and methods section preceding Table Grade equivalence is shown in terms of the broader banding structure and is based on paid grade. 3. In 2001 the QinetiQ portion of the Defence Evaluation and Research Agency (8,000) was established as a private company. 4. Includes about 50 personnel outside the Senior Civil Service but of equivalent grade. 5. Includes industrial staff on temporary promotion to non-industrial grades. 6. 1,040 Firefighters who were shown as non-industrial in April 2004 have been reclassified to industrial grades. 7. Data by sex, grade and part time/full time hours worked are not available for Royal Fleet Auxiliaries and Locally engaged civillian personnel. 8. Includes manually paid staff overseas until 2001.

77 Table 2.32 Intake and outflow of civilian personnel 1,2 Chapter 2 - Personnel 2001/ / / / / /07 Total intake MOD less Trading Funds Trading Funds Unidentified entrant Total outflow MOD less Trading Funds Retirement (normal) Retirement on grounds of ill health Resignation Other including contractorisation Trading Funds Unidentified Exit Net Change of Royal Fleet Auxiliary Net Change of Locally engaged civillians r MOD less Trading Funds by type of personnel: Non-industrial Intake Outflow Retirement (normal) Retirement on grounds of ill health Resignation Other including contractorisation Industrial Intake Outflow Retirement (normal) Retirement on grounds of ill health Resignation Other including contractorisation As a percentage of staff in post 6 Total intake 12.3% 12.2% 12.3% 9.9% 6.7% 6.4% MOD less Trading Funds 11.8% 12.3% 12.4% 10.2% 6.8% 6.1% Trading Funds 15.9% 10.9% 10.5% 7.6% 5.9% 7.9% Total outflow 21.6% 14.7% 13.2% 10.9% 10.9% 11.8% MOD less Trading Funds 11.5% 11.6% 11.5% 9.8% 10.4% 11.4% Resignation 5.1% 4.7% 4.4% 4.0% 4.3% 4.3% Trading Funds 82.7% 10.8% 16.2% 12.0% 12.9% 13.1% MOD less Trading Funds by type of personnel: Non-industrial Intake 10.8% 11.3% 11.8% 9.9% 6.4% 5.8% Outflow 9.6% 9.9% 9.8% 8.9% 10.2% 10.5% Resignation 3.6% 3.5% 3.3% 3.9% 4.3% 4.4% Industrial Intake 14.8% 16.3% 15.1% 11.3% 8.3% 7.6% Outflow 17.5% 18.1% 18.6% 13.6% 11.2% 15.3% Resignation 10.0% 9.6% 8.9% 4.5% 4.3% 4.0% Source:DASA(Civilian) 1. Civilian Level 0 and Level 1are defined in the Sources and methods section preceding Table Data in this table relate to those for which computer-based information is available. Certain groups such as GCHQ personnel are excluded for this reason. 3. Outflow figures for 2001/02 are affected by the contractorisation of the QinetiQ portion of DERA. 4. Retirement at or above normal retirement age. 5. Intake & Outflow for Locally engaged civillians and Royal Fleet Auxilliaries are not available, therefore, only net changes in strengths of RFA's and Locally engaged civilians are listed in this table. 6. Rates are expressed as a percentage of the average strength throughout the year. FTE

78 Chapter 2 - Personnel Table 2.33 Intake and outflow of civilian personnel 1 by ethnic origin and broad grade Headcount INTAKE / / / /07 White Pay Band C2 and above Pay Band D and below Industrial Trading Fund Staff Ethnic Minorities Pay Band C2 and above Pay Band D and below Industrial Trading Fund Staff Unknown Pay Band C2 and above Pay Band D and below Industrial Trading Fund Staff OUTFLOW 5 White Pay Band C2 and above Pay Band D and below Industrial Trading Fund Staff Ethnic Minorities Pay Band C2 and above Pay Band D and below Industrial Trading Fund Staff Unknown Pay Band C2 and above Pay Band D and below Industrial Trading Fund Staff Net Change of Royal Fleet Auxiliary Net Change of Locally engaged civillians Intake of Ethnic Minorities as a percentage of known ethnicity total 2003/ / / /07 Ethnic Minorities 4.0% 3.6% 5.7% 5.6% Pay Band C2 and above 3.5% 2.8% 6.0% 3.9% Pay Band D and below 4.5% 4.4% 6.8% 7.0% Industrial 3.4% 2.2% 3.3% 3.3% Trading Fund Staff - 4.1% 3.6% 4.8% Outflow of Ethnic Minorities as a percentage of known ethnicity total 2003/ / / /07 Ethnic Minorities 3.6% 3.2% 3.1% 3.3% Pay Band C2 and above 2.7% 2.3% 1.8% 2.0% Pay Band D and below 4.1% 3.8% 3.9% 4.4% Industrial 3.6% 2.5% 2.4% 2.1% Trading Fund Staff 3.1% 3.0% 2.4% 2.1% Source: DASA(Civilian) 1. Civilian Level 0 and Level 1are defined in the Sources and methods section preceding Table Records for non-industrials with no grade data have been excluded. 3. Excludes data for Unidentified Entrance and Exit codes referred to in Tables 2.32, 2.34 and Excludes intake data for staff of unknown ethnicity with no grade data, 80 in 2003/04, 250 in 2004/05, 80 in 2005/06, 30 in 2006/ Excludes outflow data for staff of unknown ethnicity with no grade data, 30 in 2003/04, 110 in 2004/05, 90 in 2005/06, 20 in 2006/ Intake & Outflow for Locally engaged civillians and Royal Fleet Auxilliaries are not available, therefore, only net changes in strengths of RFA's and Locally engaged civilians are listed in this table. 7. Percentages not shown if based on numbers below 5. -

79 Chapter 2 - Personnel Table 2.34 Intake of civilian personnel 1 by sex, grade 2 and whether full or part-time Headcount Sex, part time/full time and grade / / / / / /07 Female: full time Senior Civil Service Pay Band B Pay Band C Pay Band D Pay Band E Other non-industrial Industrial Trading Funds Male: full time r Senior Civil Service Pay Band B Pay Band C Pay Band D Pay Band E Other non-industrial Industrial Trading Funds Female: part time Senior Civil Service Pay Band B Pay Band C Pay Band D Pay Band E Other non-industrial Industrial Trading Funds Male: part time Senior Civil Service Pay Band B Pay Band C Pay Band D Pay Band E Other non-industrial Industrial Trading Funds Female intake with unknown full time/ part time status Male intake with unknown full time/ part time status Total Female Total Male Net Change of Royal Fleet Auxiliary Net Change of Locally engaged civillians Source: DASA(Civilian) 1. Civilian Level 0 and Level 1are defined in the Sources and methods section preceding Table Grade equivalence is shown in terms of the broader banding structure and is based on paid grade. 3. Around 50 people whose sex is unrecorded are excluded from this table. 4. Includes industrial staff on temporary promotion to non-industrial grades and those of unknown grade. 5. Reflects recruitment drive in Service Childrens Education (SCE) in 2003/04 & 2004/ Intake & Outflow for Locally engaged civillians and Royal Fleet Auxilliaries are not available, therefore, only net changes in strengths of RFA's and Locally engaged civilians are listed in this table.

80 Chapter 2 - Personnel Table 2.35 Outflow of civilian personnel 1 by sex, grade 2 and whether full or part-time Headcount Sex, part time/full time and grade / / / / / /07 Female: full time Senior Civil Service Pay Band B Pay Band C Pay Band D Pay Band E Other non-industrial Industrial Trading Funds Male: full time Senior Civil Service Pay Band B Pay Band C Pay Band D Pay Band E Other non-industrial Industrial Trading Funds Female: part time Senior Civil Service Pay Band B Pay Band C Pay Band D Pay Band E Other non-industrial Industrial Trading Funds Male: part time Senior Civil Service Pay Band B Pay Band C Pay Band D Pay Band E Other non-industrial Industrial Trading Funds Female outflow with unknown full time/ part time status Male outflow with unknown full time/ part time status Total Female Total Male Net Change of Royal Fleet Auxiliary Net Change of Locally engaged civillians Source: DASA(Civilian) 1. Civilian Level 0 and Level 1are defined in the Sources and methods section preceding Table Grade equivalence is shown in terms of the broader banding structure and is based on paid grade. 3. Outflow figures for 2001/02 are affected by the contractorisation of the QinetiQ portion of DERA. 4. Includes industrial staff on temporary promotion to non-industrial grades and those of unknown grade. 5. Intake & Outflow for Locally engaged civillians and Royal Fleet Auxilliaries are not available, therefore, only net changes in strengths of RFA's and Locally engaged civillians are listed in this table.

81 Chapter 2 - Personnel Table 2.36 Number of working days lost per calendar year due to sickness of civilian personnel 1, by ICD Code and Industrial/Non Industrial marker working days (thousands) Year Ending 31 December Year ending 31 March Cabinet Office Definition /07 Non Industrial total ICD category 3 ACI Injury, poisoning and certain other consequences of external causes BFO Diseases of the blood forming organs and certain disorders CIR Diseases of the circulatory system DDS Diseases of the digestive system DEM Diseases of the ear and mastoid process DEY Diseases of the eye and adnexa DGY Diseases of the genito-urinary system DRS Diseases of the respiratory system EMN Endocrine, nutritional and metabolic diseases IPO Certain infectious and parasitic diseases MSD Diseases of the musculoskeletal system and connective tissue NGB Neoplasms NSS Diseases of the nervous system OPP Factors influencing health status and contact with health service PCP Pregnancy, childbirth and the peurperium PSD Mental and behavioural disorders SCO Diseases of the skin and subcutaneous tissue SID Unknown Industrial total Sickness rates 4 - number of days divided by the average strength (FTE) for that period. Year Ending 31 December Year ending 31 March Cabinet Office Definition /07 Non Industrial total Industrial total working days (thousands) Year Ending 31 December Adjusted Data Non Industrial total Industrial total Sickness rates 4 - number of days divided by the average strength (FTE) for that period. Year Ending 31 December Adjusted Data Non Industrial total Industrial total Source: DASA (Civilian) 1. This excludes Royal Fleet Auxiliary, Trading Fund and Locally engaged personnel. 2. The Cabinet Office definition is the result of a cross governmental initiative to align sickness absence reporting for consistency, and has been used since International Statistical Classification of Diseases and Related Health Problems, Version Rates are based on absence days and are FTE working days lost. For example, if a part-time employee (working 50% of full-time hours) is sick for 7 calendar days, this is 5 working days lost and 2.5 FTE working days lost. 5. Adjusted absence days are based on MOD definition prior to Unreasonably long values edited (for example, a cold lasting for 6 months) and some logical inconsistencies corrected.

82 Chapter 2 - Personnel Table 2.37 Number of civilian personnel 1 by disability status, and grade, at 1 April 2007 Headcount Number disabled Not Disabled Disabled Disability Status Unknown Grand Total Disabled Personnel as a percentage of total (exc unknown) Civilian Level % Civilian Level % Senior Civil Service and equivalent % Band B % Band C % Band D % Band E % Unknown % Industrial % Royal Fleet Auxiliaries Trading Funds % Locally engaged personnel Source: DASA (Civilian) 1. Civilian Level 0 and Level 1are defined in the Sources and methods section preceding Table Includes about 50 personnel outside the Senior Civil Service but of equivalent grade. 3. Disability data are not currently available for Royal Fleet Auxiliaries and Locally engaged civilians. 4. Disability self certification was introduced in Percentage Breakdown of disability status, and grade, April 2007

83 Chapter 2 - Personnel Table 2.38 Age Profile of civilian personnel 1 by Industrial or Non-Industrial and sex, at 1 April 2007 Headcount Non Industrial Industrial Royal Fleet Civilian Trading Funds Locally engaged Civilian Male Female Male Female Auxiliaries 2 Level 1 Male Female civilians 2 Level Unknowns Total Source: DASA(Civilian) 1. Civilian Level 0 and Level 1are defined in the Sources and methods section preceding Table Age data are not available for Royal Fleet Auxiliaries and Locally engaged civilian personnel. Age of civilians, by sex and whether Industrial or Non-Industrial

84 Chapter 2 - Personnel Table 2.39 Number of War Pensions in payment by type of pension, as at 31 March each year TOTAL IN PAYMENT Disablement pensioners war ~ ~ ~ ~ - Inter-war war onwards Civilian Polish Mercantile marine Not known Other pensioners War widows pension War widower pension War orphans pension War parents pension Adult dependant pension Unmarried dependant pension 12.. ~ ~ ~ ~ ~ ~ ~ Allowance for lowered standard of occupation only Child allowance only Pensions, allowances or other payments may be awarded where disablement or death is a result of service in HM Forces, or of an injury sustained as a result of war-time service in the Naval Auxiliary Service, or the Mercantile Marine. Awards may also be made in respect of service in the Polish Forces under British command during World War Two. While most payments are made to people living in the United Kingdom, some recipients are from overseas. Pensions, allowances or other payments may also be awarded where the disablement or death of a civilian of a member of the Civil Defence Organisation is the direct result of an injury sustained as a result of enemy action in World War Two. 2. Data are not available for Following the implementations of the recommendations made as part of the recent National Statistics Quality Review we have made improvements to the processing of current data. This has resulted in some small adjustments (less than 100 total) to the figures. 4. A number of pensioners receive an Allowance for Lower Standard of Occupation, but do not receive an ongoing war pension. Some, but not all, of these were formerly classified as disablement pensioners. 5. Disabled because of service between 4 August 1914 and 30 September Disabled because of service between 1 October 1921 and 2 September Disabled because of service from 3 September 1939 to date. 8. Paid to the spouse of an ex-service person whose death was in service or related to disablement because of service from 4 August 1914 to date. 9. A change in the law, from 8 April 2002, governing the War Pensions Scheme means that the provisions for war widowers have been equalised to align with those available to war widows; in effect this means that claims from war widowers are no longer means tested. 10. Paid to: (i) the child of a deceased service person who has no surviving parent; (ii) a child whose mother was divorced from a serviceman at the time of death; or (iii) a child who is not in the care of the surviving parent. 11. Paid to a parent of a deceased service person. 12. Paid to a partner who lived with the ex-serviceman for at least six months before his enlistment, was maintained by him, and who has borne his child. 13. A case where a Child Allowance is in payment for a child, where one parent has died, and either the surviving parent does not qualify for a War Widows/Widowers Pension, because of remarriage or cohabitation, or the child does not live with the surviving parent.

85 Charts to Table 2.39 Chapter 2 - Personnel Average weekly amount of Disablement Pension (entitlement) - as at 31 March 2007 The overall average weekly amount of war disablement pension and associated supplementary allowances is Average amount of Widow(er)'s Pensions (entitlement) - as at 31 March 2007 The average weekly amount received by widow(er)s is The actual War Widow(er)s portion of the pension makes up just over half the total, with the remainder being made up of Supplementary Allowances.

86 Chapter 2 - Personnel Compensation Claims made against the Ministry of Defence This section describes common law non-contractual compensation claims made against the Ministry of Defence. These claims are of three broad types: employer's liability for Armed Forces personnel, employer's liability to its civilian employees and public liability. Tables 2.40 and 2.41 show numbers of new claims made and numbers of claims settled, analysed by category of claim and by cause. The Department self insures against loss. However, it employs commercial companies as claim handlers. All settlements are paid by the Department, the companies in return receive a fee for each claim. Gallagher Bassett recently won the contracts in respect of third party motor claims and Service and civilian employer s liability for all claims received after 1 May Claims received before this date are handled by: Third party motor claims are handled by AXA Corporate Solutions; Employer s liability claims from Armed Forces personnel are handled by Royal SunAlliance (RSA); Employer s liability claims from civilian personnel were handled by AXA and from by RSA. The MOD's Claims branch handles all other claims, including: Public liability worldwide, property damage and personal injury (except where there is an Area Claims Office (ACO)), damage or injury caused by low flying military aircraft, maritime claims and salvage claims, clinical negligence, claims made against a NATO visiting force and novel or contentious cases ACOs are part of the Command Secretariat and are located in Cyprus, Falkland Islands, Germany (for NW Europe), Balkans, Afghanistan and Iraq. They deal with public liability claims made against the MOD within their geographic area. New claims The number of new claims is the number of new cases opened by the MOD's Claims branch, ACOs and commercial claims handlers during that year, re-opened cases are not included. A new claim may be in the form of a letter from a claimant, their legal representative or in the form of a writ issued by a court of law. The largest number of new claims is in respect of on duty Road Traffic Accidents involving Armed Forces personnel or MOD personnel driving a MOD owned or MOD hired vehicle. Settled claims These are claims for which a full and final settlement has been made either by agreement between the parties or which a court has decided. Claims are not recorded as settled until the final payment is made, normally the claimant s solicitors fees. This bill is sometimes presented some months after the compensation and so compensation paid and legal costs can be in different financial year. Further details may be found in the Claims Annual Report available from DS&C Claims.

87 Chapter 2 - Personnel Table 2.40 New claims and settled claims by broad category in each year The data in this table are outside the scope of National Statistics because they do not meet all of the high professional quality assurance standards set out in the National Statistics Code of Practice. Number New Claims Notified 2002/ / / / /07 Total Public Liability Claims Low Flying Maritime Other Public Liability (inc Northern Ireland) Radiation Employer's Liability Claims Service Employment Tribunal Other Service employer's liability Asbestos Related Noise Induced Hearing Loss Vibration White Finger Other civilian employer's liability Other Clinical Negligence Road Traffic Accidents Area Claims Offices' Claims Visiting Forces Settled Claims Notified Total Public Liability Claims Low Flying Maritime Other Public Liability (inc Northern Ireland) Radiation Employer's Liability Claims Service Employment Tribunal Other Service employer's liability Asbestos Related Noise Induced Hearing Loss Vibration White Finger Other civilian employer's liability Other Clinical Negligence Road Traffic Accidents Area Claims Offices' Claims Visiting Forces Source: MOD Claims Annual Reports 1. Although generally Employment Tribunal cases are now dealt with by TLBs, the new claims this year are Homosexual dismissal cases for which DS&C Claims agreed to retain central responsibility. 2. Claims against NATO forces visiting the UK and claims by NATO countries against UK personnel visiting those countries Number of settled claims by broad category 2006/07

88 Chapter 2 - Personnel Table 2.41 New claims and settled claims by broad cause in each year The data in this table are outside the scope of National Statistics because they do not meet all of the high professional quality assurance standards set out in the National Statistics Code of Practice. Number New Claims Notified 2002/ / / / /07 Total Asbestos Related Clinical Negligence Fall Handling/Sprain Impact Low Flying Machinery/Vibration White Finger Maritime Noise Induced hearing Loss Other Causes Not Known Vehicle Related Settled Claims Notified Total Asbestos Related Clinical Negligence Fall Handling/Sprain Impact Low Flying Machinery/Vibration White Finger Maritime Noise Induced Hearing Loss Other Causes Not Known Vehicle Related Source: MOD Claims Annual Reports 1. The cause of a claim may not be known at the New Claims stage if for example, the claimant simply states that they have a claim but does not state exactly what it is. At settlement stage, although the cause of the claim will be recorded on the claim file, it may not always be recorded on the databases from which these data are drawn. Number of settled claims by broad cause in 2006/07

89 Chapter 2 - Personnel Table 2.42 Manpower holdings and ceilings by member country within the scope of the Conventional Armed Forces in Europe Treaty at 1 January 2007 The data in this table are outside the scope of National Statistics because they are provided by an organisation outside the UK Government Statistical Service. Holding Ceiling Countries not in NATO Armenia Azerbaijan Belarus Georgia Moldova Russia Ukraine NATO Countries Belgium Bulgaria Canada Czech Republic Denmark France Germany Greece Hungary Italy Luxembourg Netherlands Norway Poland Portugal Romania Slovakia Spain Turkey United Kingdom United States of America Source: Directorate for Counter-Proliferation and Arms Control 1. Manpower in the Atlantic to the Urals zone only.

90 Chapter 3 - Formations, Vessels, Aircraft and Vehicles of the Armed Forces Introduction Formations of the Naval Service, Army and Royal Air Force at 1 April each year Table 3.1 shows the number of submarines and ships in the Royal Navy and Royal Fleet Auxiliary, Royal Marine Commando units, squadrons of helicopters and fixed-wing aircraft in the Fleet Air Arm, and Reserve Units. More information about Royal Navy ships can be found at: More information about Royal Navy submarines can be found at: More information about the Royal Fleet Auxiliary can be found at: More information about the Royal Marines can be found at: More information about the Naval Air Squadrons can be found at: More information about the Royal Navy Reserve can be found at: More information about the Royal Marine Reserve is at: Table 3.2 shows the numbers of Regiments and Infantry battalions in the Regular and Territorial Army; and Corps, Divisional and Brigade headquarters. More information about - Regiments and Battalions is at: Divisions and Brigades is at: The Territorial Army can be found at: The Royal Armoured Corps can be found at: The Infantry can be found at: The Army Air Corps can be found at: The Royal Artillery can be found at: The Royal Engineers can be found at: The Royal Corps of Signals can be found at: The Royal Electrical & Mechanical Engineers is at: The Army Medical Services can be found at: Table 3.3 shows the number of squadrons in the Royal Air Force (RAF) and the Royal Auxiliary Air Force (RAuxAF), and units in the RAF Regiment. More information about RAF squadrons can be found at: More information about Royal Auxiliary Air Force Units can be found at: More information about the RAF Regiment can be found at: Table 3.4 shows the number of Regiments and Squadrons in the Special Forces, Joint Helicopter Command and Joint Force Harrier. Royal Navy and Royal Fleet Auxiliary operational ships and submarines Table 3.5 shows the numbers of Royal Navy and Royal Fleet Auxiliary ships and submarines by class and base port, categorized by those that were operational and those undergoing refit at 1 April Militarily useful British-registered merchant vessels at 31 December each year Militarily useful British-registered merchant vessels are vessels that could be requisitioned in the appropriate circumstances in support of the armed forces. Other types of ship might also be used in certain cases. Foreign-flagged, but British-owned ships could also be requisitioned in certain circumstances. Table 3.6 shows the number of passenger and dry cargo merchant vessels by principal categories and sizes. Table 3.7 shows the number of merchant tankers, specialist and fishing vessels by principal categories and sizes. Aircraft Fleets by type of aircraft at 1 April each year Forward Available Fleet (FAF) is a new way of managing aircraft resources with the aim to enable the optimal level of availability to the Royal Navy. FAF is defined as the number of aircraft required to undertake the mandated task; including aircrew and ground crew training, 'in-work' rectification and operational / tactical trials. Table 3.8 shows the aircraft fleets for the Royal Navy Fleet Air Arm. Table 3.9 shows the aircraft fleets for the Royal Air Force Strike Command including Operational Conversion Units and Training Aircraft. The RAF no longer identified separate Required Operating Fleets for Operational Conversion Units with effect from 1 April This table now incorporates Operational Conversion Units which in previous editions of UKDS were in Table Table 3.10 shows the aircraft fleets by type in the Joint Helicopter Command and Joint Force Harrier. More information about Fleet Air Arm aircraft can be found at: More information about Army aircraft can be found at:

91 More information about RAF aircraft can be found at: Equipment holdings within the scope of the Treaty on Conventional Armed Forces in Europe The numbers of equipments in Tables 3.11, 3.12 and 3.13 cover holdings in the UK, Germany, Cyprus and Gibraltar. Table 3.11 shows the surveyed holdings of Tanks and Artillery by type of equipment, and indicating which types of equipment are obsolete and nonoperational at 1 January each year. Table 3.12 shows the surveyed holdings of Armoured Combat Vehicles and Armoured Combat Vehicle Look-alikes by type of equipment, and indicating which types of equipment are obsolete and non-operational at 1 January each year. Table 3.13 shows the surveyed holdings of Attack helicopters and Combat aircraft by type of equipment, and indicating which types of equipment are obsolete and non-operational at 1 January each year. The information in Tables 3.14 and 3.15 is reproduced from the Military Balance 2007 published by Routledge for the International Institute for Strategic Studies (ISSN ). Table 3.14 shows the declared Holdings and Ceilings of Tanks, Armoured Combat Vehicles and Artillery by country within the scope of the Conventional Armed Forces in Europe Treaty at 1 January Table 3.15 shows the declared Holdings and Ceilings of Attack helicopters and Combat aircraft by country within the scope of the Conventional Armed Forces in Europe Treaty at 1 January 2007.

92 Chapter 3 - Formations, Vessels, Aircraft and Vehicles of the Armed Forces Table 3.1 Number of vessels in the Royal Navy and Royal Fleet Auxiliary, and squadrons in the Fleet Air Arm at 1 April each year Royal Navy submarines Total Vessels Trident / Polaris Vessels Fleet Vessels Royal Navy ships Aircraft Carriers Vessels Landing Platform Docks / Helicopter Vessels Destroyers Vessels Frigates Vessels Mine countermeasures vessels Vessels Patrol ships and craft Vessels Support ships Vessels Survey ships Vessels Ice patrol ships Vessels Royal Fleet Auxiliary Service Tankers Vessels Fleet replenishment ships Vessels Aviation training ship Vessels Landing ships Vessels Forward repair ships Vessels Roll-on Roll-off vessels Vessels * * Royal Marines RM Commando Commandos Command Support Group Commandos Logistic unit Regiments Artillery unit Regiments Engineer unit Squadrons Nuclear Guarding and Fleet Security Squadrons Assault (landing craft) Squadrons Naval Aircraft Fixed Wing Aircraft 15 Squadrons Helicopters 16 Squadrons Reserve Units Royal Navy Reserve Units Units Royal Marine Reserve Units Units Source: MOD Resources and Plans 1. All Royal Naval vessels are counted in Only active vessels are counted from HMS Spartan was withdrawn from service during the year. 3. HMS Sovereign was withdrawn from service during the year. 4. HMS Invincible was placed into a state of very low readiness in late HMS Glasgow and HMS Newcastle were withdrawn from service during the year. 6. HMS Cardiff was withdrawn from service during the year. 7. HMS Marlborough and HMS Grafton were withdrawn from service during the year. 8. HMS Bridport, Sandown and Inverness were withdrawn from service during the year. 9. HMS Leeds Castle and the NI Squadron, consisting of HMS Brecon, HMS Cottesmore and HMS Dulverton, were withdrawn from service during the year. 10. Four Fleet replacement ships have been re-categorised as Tankers to reflect their primary role. 11. RFA Grey Rover was withdrawn from service during the year. 12. RFA Brambleleaf and RFA Oakleaf due to leave service in year. 13. RFA Mounts Bay enterered service during the year. RFA Sir Tristram was withdrawn from service 14. RFA Largs Bay and RFA Cardigan Bay entered service during the year. RFA Sir Galahad was withdrawn from service. 15. Excludes Joint Force Harrier squadrons from 1 April Excludes Joint Helicopter Command squadrons from 1 October OCUs/ OEUs excluded.

93 Chapter 3 - Formations, Vessels, Aircraft and Vehicles of the Armed Forces Table 3.2 Number of Regiments, Infantry battalions & Major Headquarters, in the Regular & Territorial Army at 1 April each year Combat arms Armour Regular Army Regiments Territorial Army Regiments Infantry Regular Army Battalions Territorial Army Battalions Home Service Forces Battalions Special Forces Regular Army Regiments 1 1 * 2 * * * * * * Territorial Army Regiments 2 2 * 2 * * * * * * Aviation Regular Army Regiments 4 5 * 3 * * * * * * Territorial Army Regiments.. 1 * 3 * * * * * * Combat support Artillery Regular Army 4 Regiments Territorial Army 5 Regiments Engineers Regular Army Regiments Territorial Army Regiments Signals Regular Army Regiments Territorial Army Regiments Combat service support Equipment support Regular Army Battalions Territorial Army Battalions Logistics Regular Army Regiments Territorial Army Regiments Medical Regiments / Field Hospitals 6 Regular Army Number Territorial Army Number Corps, Division & Brigade HQ NATO Corps HQ Division / District HQ: deployable non-deployable Brigade HQ: deployable non-deployable Source: MOD Resources and Plans 1. The numbers for 2006 reflect the Army's implementation of the Future Army Structure (FAS), announced on 16 December From 1 April 2000 these units form part of Direct Special Forces. See Table From 1 April 2000 these units form part of the Joint Helicopter Command. See Table Excludes 14th Regiment Royal Artillery. 5. Includes the Honourable Artillery Company. 6. Field Ambulance structures have been subsumed into the Medical Regiment concept as part of structural changes across the Medical Services. Field Ambulances still exist in the Territorial Army.

94 Chapter 3 - Formations, Vessels, Aircraft and Vehicles of the Armed Forces Table 3.3 Number of squadrons in the Royal Air Force and the Royal Auxiliary Air Force at 1 April each year Excludes Operational Conversion Units which train qualified aircrew for different aircraft types Regular Air Force Strike / attack Squadrons Offensive support Squadrons Reconnaissance Squadrons Maritime patrol Squadrons } Air defence Squadrons r 4 Airborne Early Warning Squadrons ISTAR Squadrons Air transport / Air Refuelling Squadrons Search and Rescue Squadrons RAF FP Wg HQs RAF Ground based air defence 5 Squadrons * * RAF Regiment Field 6 Squadrons * * RAF Regt (Jt CBRN) Squadrons Tactical Provost Wg HQ * Tactical Provost Squadrons * Auxiliary Air Force Air Movements Squadrons Aeromedical 7 Squadrons HQ Augmentation Squadrons Intelligence Squadrons Photographic Interpretation Squadrons Public Relations Squadrons Meteorological Squadrons RAuxAF Regt Field Squadrons FP Operations Support Squadrons Tactical Provost Squadrons RAuxAF Regt Chemical, Biological, Squadron Radiological and Nuclear Source: MOD Resources and Plans 1. Excludes Joint Force Harrier squadrons from 1 April See Table Joint units. 2. From 2006, these squadrons are multi-roled. 3. Includes 6 Sqn (Jag) disbanded 30 Apr 07 but not Typhoon as no Offensive capability was held on 1 Apr Excludes Support Helicopter squadrons in the Joint Helicopter Command from October See Table Joint units. 5. Delivery of Ground based air defence is now vested with the Army. The remaining 2 RAF Squadrons will be re-roled to form 1 Field Squadron during In UKDS editions 2003 and 2004, Ground Based Air Defence and Field Squadrons for years 2001 to 2004 were also included under Regular Air Force. 7. Includes Air Transportable Surgical.

95 Chapter 3 - Formations, Vessels, Aircraft and Vehicles of the Armed Forces Table 3.4 Number of Regiments and Squadrons in selected Joint Units at 1 April each year Excludes Operational Conversion Units which train qualified aircrew for different aircraft types. Joint Units Special Forces Special Air Service 1 Regiments Special Air Service - Territorial Army 1 Regiments Special Boat Service Squadrons Special Forces Support Group Batttalion Battalion Joint Nuclear Biological Chemical Regiments Joint Helicopter Command Royal Navy Helicopter Squadrons Army Aviation 5 Regiments Army Aviation - Territorial Army Regiments Royal Air Force Helicopter Squadrons Royal Auxiliary Air Force 7 Squadrons Joint Special Forces Air Wing Unit Joint Force Harrier Royal Navy Squadrons , Royal Air Force Squadrons Source: MOD Resources & Programmes 1. Data for previous years prior to the creation of Joint Units are shown in Table Army Regiments. 2. The term "squadron" has different meanings among the three Services: see Glossary for details. 3. The Special Forces Support Group was formed as a result of the Ministerial Announcement on 16 Dec 2004 as part of The Future Army Structure. It is a Tri-Service Unit based on 1 PARA, to provide specialist support to Special Forces. 4. Helicopters were transferred to the Joint Helicopter Command on 1 Oct These figures exclude the School of Army Aviation, 667 (D&T) Sqn and 657 Sqn and six independent Army Air Corps flights Regt AAC(V) formed on 1 Apr Helicopter Support Squadron provides a pool of trained personnel to provide combat service support to the Support Helicopter Force in training and on operations in times of crisis and war. 8. Includes an RAF squadron shown against "Royal Air Force Helicopter" above in previous editions of UKDS. 9. Harrier aircraft were transferred to the Joint Force Harrier on 1 April Related data for previous years are shown in Table Naval aircraft and Table RAF aircraft Naval Air Sqn (FA2) disbanded 31 Mar Naval Air Sqn (FA2) disbanded 31 Mar Naval Air Sqn (FA2) disbanded 31 Mar The Royal Navy Sea Harrier was withdrawn from service Naval Air Squadron was reformed with Harrier GR7/9 on 31 Mar 2006, and 801 Naval Air Squadron was commisioned on 1 Oct The Fleet Air Arm Strike Wing, the equivalent to an RAF Squadron, comprises 800 and 801 Naval Air Squadrons.

96 Chapter 3 - Formations, Vessels, Aircraft and Vehicles of the Armed Forces Table 3.5 Royal Navy and Royal Fleet Auxiliary ships and submarines that were operational or undergoing refit by class and base port at 1 April 2007 Operational vessels are manned, in and around water, with readiness state under the command of CINCFLEET. Vessels undergoing refit are unmanned and in a dockyard in the custody of the DE&S organisation. Royal Navy submarines Base port Operational Undergoing refit Total Trident Faslane Fleet Devonport Faslane 2-2 Royal Navy ships Base port Operational Undergoing refit Total Aircraft Carriers Portsmouth 2-2 Landing Platform Dock Devonport Landing Platform Helicopter Devonport 1-1 Destroyers Type 42 Portsmouth Frigates Type 23 Devonport Portsmouth Type 22 Devonport Offshore patrol River class Portsmouth 3-3 Castle class Portsmouth 1-1 Mine countermeasures vessels Hunt class Faslane Portsmouth Sandown class Faslane Portsmouth Patrol craft University Royal Navy Unit Navigational training Various Gibraltar Squadron Gibraltar 2-2 Cyprus Squadron Cyprus 2-2 Survey ships Devonport 5-5 Ice patrol ships Portsmouth 1-1 Royal Fleet Auxiliary Service Operational Undergoing refit Total Fleet tankers Support tankers Fleet replenishment ships Aviation training ship Landing ships Forward repair ship Roll-on Roll-off vessels Source: MOD Resources and Plans

97 Chapter 3 - Formations, Vessels, Aircraft and Vehicles of the Armed Forces Table 3.6 Militarily useful British-registered passenger and dry cargo merchant vessels by principal categories and sizes at 31 December each year Militarily useful British-registered merchant vessels are vessels that could be requisitioned in the appropriate circumstances in support of the armed forces. Other types of ship might also be used in certain cases. Foreign-flagged but British-owned ships could also be requisitioned in certain circumstances Passenger & dry cargo merchant vessels United Kingdom Isle of Man and the Channel Islands UK Overseas Territories Cruise ship (over 200 berths) United Kingdom Isle of Man and the Channel Islands UK Overseas Territories Roll-on roll-off passenger (over 200 berths) United Kingdom Isle of Man and the Channel Islands UK Overseas Territories Roll-on roll-off freight (over 500 lane metres) United Kingdom Isle of Man and the Channel Islands UK Overseas Territories General cargo break bulk (over 1,000 deadweight tons) United Kingdom Isle of Man and the Channel Islands UK Overseas Territories Refrigerated cargo (over 1,000 deadweight tons) United Kingdom Isle of Man and the Channel Islands UK Overseas Territories Container (fully cellular, over 100 twenty foot containers) United Kingdom Isle of Man and the Channel Islands UK Overseas Territories Source: Department for Transport The information in this table is for UK Overseas Territories: Anguilla, British Antarctic Territory, Bermuda, British Indian Ocean Territory, Belize [British], British Virgin Islands, Cayman Islands, Falkland Islands (and Dependencies), Gibraltar, Montserrat, St Helena, Turks and Caicos Islands. This list of countries differs slightly from the list used by the FCO.

98 Chapter 3 - Formations, Vessels, Aircraft and Vehicles of the Armed Forces Table 3.7 Militarily useful British-registered merchant tankers, specialist and fishing vessels by principal categories and sizes at 31 December each year Militarily useful British-registered merchant vessels are vessels that could be requisitioned in the appropriate circumstances in support of the armed forces. Other types of ship might also be used in certain cases. Foreign-flagged but British-owned ships could also be requisitioned in certain circumstances Tankers, Specialist vessels & Fishing vessels United Kingdom Isle of Man and the Channel Islands UK Overseas Territories Product and chemical tankers (2,000 to 80,000 dead weight tons) United Kingdom Isle of Man and the Channel Islands UK Overseas Territories Large diving support vessels United Kingdom Isle of Man and the Channel Islands UK Overseas Territories Large tugs (over 100t bollard pull) United Kingdom Isle of Man and the Channel Islands UK Overseas Territories Large fishing vessels (over 2,000 horse power) United Kingdom Isle of Man and the Channel Islands UK Overseas Territories Source: Department for Transport The information in this table is for UK Overseas Territories: Anguilla, British Antarctic Territory, Bermuda, British Indian Ocean Territory, Belize [British], British Virgin Islands, Cayman Islands, Falkland Islands (and Dependencies), Gibraltar, Montserrat, St Helena, Turks and Caicos Islands. This list of countries differs slightly from the list used by the FCO.

99 Chapter 3 - Formations, Vessels, Aircraft and Vehicles of the Armed Forces Table 3.8 Aircraft fleets by type of aircraft for the Royal Navy Fleet Air Arm at 1 April each year From 2006 onwards the term Required Operating Fleet is no longer used and has been replaced by Forward Available Fleet as defined in the introduction to Chapter 3. The Required Operating Fleet was the total number of aircraft needed to undertake the defined military task. Required Operating Fleet FAF Aircraft type Aircraft role Merlin Mk 1 Anti-Submarine Lynx Mk 3 Anti-Submarine / Anti-Ship Lynx Mk 8 Anti-Submarine / Anti-Ship Sea King Mk 2 AEW 2 Airborne Early Warning Sea King Mk 5 Anti-Submarine and Search & Rescue Sea King MK 6 Anti-Submarine Sea King Mk 7 ASAC 2 Airborne Surveillance and Area Control Hawk Fleet Training Support Jetstream T2 Aircrew Training Jetstream T3 Aircrew Training and Support Source: MOD Resources and Plans 1. Forward Available Fleet - see Introduction to Chapter 3 2. The Sea King Mk 7 has replaced the Sea King Mk 2 in the Airborne Surveillance role.

100 Chapter 3 - Formations, Vessels, Aircraft and Vehicles of the Armed Forces Table 3.9 Aircraft fleets by type of aircraft for the Royal Air Force Air Command including Operational Conversion Units and Training Aircraft at 1 April each year The RAF no longer identified separate Required Operating Fleets for Operational Conversion Units with effect from 1 April Operational Conversion Units train qualified aircrew for different aircraft types. As at 1 Apr 07 STC and PTC amalgamated into Air Command which now controls all RAF flying assets. Required Operating Fleet FAF 1 Aircraft Role Aircraft type Air - Combat Tornado GR Jaguar GR1/A/3/3A Jaguar T2A/T Harrier GR3/5/ * 3 * * * * * * Harrier T4/ * 3 * * * * * * Tornado F Typhoon C4 and ISTAR Nimrod R Canberra PR Canberra T Sentry AEW Maritime Nimrod MR Air Support VC10 C1K VC10 K VC10 K Sea King HAR3/3A Tristar K Tristar KC Tristar C Hawk (100 Sqn) * * * * * * Logistics BAe 125 CC BAe 146 CC C Hercules C1/C3/C4/C Support Helicopters Chinook * 9 * * * * * * Puma * 9 * * * * * * Wessex * 9 * * * * * * Training Aircraft Aircraft Role Aircraft type Elementary Training 10 Viking Vigilant Basic Training 10 Tucano r 52 Jetstream T Dominie T Advanced Training 10 Hawk T1/T1A/T1W RAF Aerobatic Team (Red Arrows) Hawk T1/T1A Source: MOD Resources and Plans 1. Forward Available Fleet - see Introduction to Chapter Jaguar GR1A/3/3A were declared non-operational with effect from 30 April Harrier aircraft were transferred to the Joint Force Harrier on 1 April See Table Tornado F3 are reducing and due to be disbanded. 5. Canberra was declared non-operational with effect from July The Nimrod MR2 are to be replaced by the Nimrod MRA4. 7. Excludes two Sea King aircraft attached to 78 Sqn (based in the Falkland Islands). 8. Prior to 2005, 100 Sqn were included under Personnel and Training Command. 9. Support helicopters were transferred to the Joint Helicopter Command on 1 October See Table Air Command also use Beechking Air 200, Tutor, Firefly, Squirrel and Griffin aircraft owned by a private contractor in training roles. 11. Reduction in Tucano ROF reflects maturing Resources and Management programmes.

101 Chapter 3 - Formations, Vessels, Aircraft and Vehicles of the Armed Forces Table 3.10 Aircraft fleets by type of aircraft in the Joint Helicopter Command and Joint Force Harrier at 1 April each year The Joint Helicopter Command was formed on 1 October The Joint Force Harrier was formed on 1 April See Table 3.9 for earlier data on RAF aircraft Required Operating Fleet FAF 1 Joint Helicopter Command Aircraft type Royal Navy Helicopters Sea King HC Sea King HC Lynx AH Gazelle Army Aviation Helicopters Lynx Gazelle Apache Islander r 5 Defender RAF Helicopters Chinook HC Puma HC Merlin Mk Wessex HC Joint Force Harrier Aircraft type Royal Navy Aircraft Sea Harrier FA Harrier T4 / T RAF Aircraft (including OCUs 9 ) Harrier GR Harrier T10 / T Source: MOD Resources and Plans 1. Forward Available Fleet - see Introduction to Chapter The Required Operational Fleet was the Aircraft Establishment plus the Air Engineering Pool (AEP). Sea King HC4 had an AEP of 4, and Sea Harrier FA2 an AEP of Sea King HC 6 introduced since 1 April 2006 to replace Sea King HC4 undergoing modification. 4. Operated by the Royal Navy, but owned by the Army and included in the Army Aviation Helicopter figures. 5. Reduction due to restructuring under medium term strategy plans and moving personnel to Attack Helicopters. 6. The In Service Date for the Defender 4000 was 24 December Merlin replaced Wessex in The Sea Harrier and Harrier T8 were docommisioned prior to 1 April Operational Conversion Units train qualified aircrew for different aircraft types. In previous editions of UKDS these were shown separately. The RAF no longer identifies ROFs for OCUs separately from front line aircraft.

102 Chapter 3 - Formations, Vessels, Aircraft and Vehicles of the Armed Forces Table 3.11 Tanks and Artillery Holdings in the UK, Germany, Cyprus & Gibraltar within the scope of the Conventional Armed Forces in Europe Treaty at 1 January each year Battle Tanks Challenger Challenger Chieftain Centurion Artillery Multiple Launch Rocket System mm Light Gun AS90 155mm gun FH70 155m towed howitzer mm Pack Howitzer " Towed Howitzer Abbot 105mm self-propelled gun M110 8" self-propelled howitzer Tampella Mortar Source: Directorate for Counter-Proliferation and Arms Control 1. See Descriptions of Equipments on the CFE Vehicles and Aircraft page. 2. Obsolete equipment used for static display, training aids & targetry are included in the reported figures from Obsolete non-operational equipment used as training aids, gate guardians and museum pieces on CFE declared sites

103 Chapter 3 - Formations, Vessels, Aircraft and Vehicles of the Armed Forces Table 3.12 Armoured Combat Vehicle Holdings in the UK, Germany, Cyprus & Gibraltar within the scope of the Conventional Armed Forces in Europe Treaty at 1 January each year Armoured Combat Vehicles Warrior AFV 432 Rarden AFV Saxon Spartan Stormer Scorpion Humber Saracen Saladin Viking * * * * Armoured Combat Vehicle Look-alikes Warrior RA Warrior Rep Warrior Rec AFV 434 * AFV mm Mortar AFV 432 CP/RA AFV 432 Cymbeline AFV 432 EW AFV AFV Samson Saracen CP Saxon AD Saxon CP Saxon FCC Saxon Maintenance Shielder * Spartan Milan Spartan Javelin Stormer HVM * Striker Sultan * Fuchs NBC Viking Rep/Rec Armoured Vehicle Launcher Bridge Chietain Titan Source: Directorate for Counter-Proliferation and Arms Control 1. Obsolete non-operational equipment used as training aids, gate guardians and museum pieces on CFE declared sites. 2. These Armoured Combat Vehicles are included in the reported figures from 2004, in accordance with the CFE treaty. 3. These Armoured Combat Vehicle look-alikes are included in the reported figures from 2000, in accordance with the CFE treaty.

104 Chapter 3 - Formations, Vessels, Aircraft and Vehicles of the Armed Forces Table 3.13 Aircraft Holdings in the UK, Germany, Cyprus & Gibraltar within the scope of the Conventional Armed Forces in Europe Treaty at 1 January each year Attack helicopters Lynx Gazelle Apache Wessex HC5C Scout Combat aircraft Canberra Harrier Jaguar Tornado EF Buccaneer F4 Phantom Hunter Lightning Source: Directorate for Counter-Proliferation and Arms Control 1. See Descriptions of Equipments on the CFE Vehicles and Aircraft page. 2. Obsolete non-operational equipment used as training aids, gate guardians and museum pieces on CFE declared sites. 3. Obsolete equipment used for static display, training aids & targetry are included in the reported figures from Eurofighter 2000 also known as 'Typhoon'.

105 Chapter 3 - Formations, Vessels, Aircraft and Vehicles of the Armed Forces Table 3.14 Declared Tanks, Armoured Combat Vehicles & Artillery Holdings and Ceilings by country within the scope of the Conventional Armed Forces in Europe Treaty at 1 January 2007 Includes Treaty Limited Equipment with land-based maritime sources such as Marines and Naval Infantry. Tanks Armoured Combat Vehicles Artillery Holdings Holdings Ceiling Holdings Countries not in NATO Ceiling Ceiling Armenia Azerbaijan Belarus Georgia Moldova Russia Ukraine Countries in NATO Holdings Ceiling Holdings Ceiling Holdings Ceiling Belgium Bulgaria Canada Czech Republic Denmark France Germany Greece Hungary Italy Netherlands Norway Poland Portugal Romania Slovakia Spain Turkey United Kingdom United States of America Source: Directorate for Counter-Proliferation and Arms Control 1. Manpower and Treaty Limited Equipment is only for that in the Atlantic to the Urals zone 2. These countries joined NATO on 29 March Czech Republic, Hungary and Poland became NATO members on 12 March 1999.

106 Chapter 3 - Formations, Vessels, Aircraft and Vehicles of the Armed Forces Table 3.15 Declared Attack Helicopters & Combat Aircraft Holdings & Ceilings by country within the scope of the Conventional Armed Forces in Europe Treaty at 1 January 2007 Attack helicopters Combat aircraft 1 Countries not in NATO Holdings Ceiling Holdings Ceiling Armenia Azerbaijan Belarus Georgia Moldova Russia Ukraine Countries in NATO Holdings Ceiling Holdings Ceiling Belgium Bulgaria Canada Czech Republic Denmark France Germany Greece Hungary Italy Netherlands Norway Poland Portugal Romania Slovakia Spain Turkey United Kingdom United States of America Source: Directorate for Counter-Proliferation and Arms Control 1. Does not include land-based maritime aircraft for which a separate limit has been set. 2. Manpower and Treaty Limited Equipment is only for that in the Atlantic to the Urals zone. 3. These countries joined NATO on 29 March Czech Republic, Hungary and Poland became NATO members on 12 March 1999.

107 Chapter 4 - Aircraft Air Accidents, Casualties and Flying Hours Introduction Aircraft Air Accidents and deaths and major injuries Table 4.1 shows the number of helicopters and fixed wing aircraft that were lost or badly damaged in air accidents by service. Loss of an aircraft is when the aircraft is damaged beyond economic repair or is missing. Major damage to an aircraft is damage that is not repairable on site because special facilities or equipment are needed. Table 4.2 shows the numbers of deaths and major injuries by service caused by aircraft air accidents. Deaths are those who die as a result of the accident within a year, or are missing, as a result of the accident. Major injuries are those that result in an absence of more than 28 days, plus major bone fractures and second or third degree burns. Table 4.3 lists aircraft air accidents and associated deaths & major injuries by type of aircraft in Aircraft Air Accidents, Flying Hours and Damage rates by role and type of aircraft The information in these tables is grouped by the role of the aircraft (Operational or Training) and by Fast Jet, Helicopters, and Transport and Reconnaissance. The aircraft are presented in descending order of damage rates over the life of the aircraft. Table 4.4 shows the number of aircraft lost or badly damaged in air accidents by aircraft role and type. Table 4.5 shows thousands of hours flown by aircraft role and type. Table 4.6 shows the damage rates per ten thousand flying hours by aircraft role and type. Aircraft losses and aircrew casualties during military operations Table 4.7 shows aircraft losses and aircrew casualties during military operations Telic and Herrick. More information on Operation Telic (Iraq) is at: More information on Operation Herrick (Afghanistan) is at: Key points 1 helicopter and 3 fixed wing aircraft were lost or badly damaged in air accidents during 2006 (Table 4.1). 15 people were killed and 5 suffered major injuries in air accidents in 2006 (Table 4.2). The accident involving the largest number of casualties was the crash of an RAF Nimrod on 2 September, when 14 service personnel were killed (Tables 4.3 & 4.7). Fast Jets tend to have the highest accident rates, followed by Helicopters then Transport and Reconnaissance aircraft (Table 4.6). As agreed at the UKDS External Consultation meeting, Table 4.8 (MOD vehicle accidents and incident by vehicle type ) and Table 4.9 (Number of deaths and major injuries, by Service, in MOD vehicle accidents ) have not been produced this year. Defence Supply Chain Operations and Movements currently produce a detailed safety report which may be requested from MOD by making a Freedom of Information request quoting Defence Annual Road Safety Report (2006) published as JSP 485. [

108 Chapter 4 - Aircraft Air Accidents, Casualties and Flying Hours Table 4.1 Number of aircraft by service lost or badly damaged in air accidents each year These are aircraft damage caused by accidents that happened after the aircrew had taken responsibility for the aircraft. They include accidents during military operations, but exclude aircraft losses caused by 'hostile action' (these are detailed in Table 4.7). This table includes accidents to aircraft on MOD Defence Equipment & Support charge regulated through the Airworthiness and Flight Test Regulatory Authority (AFTRA). Lost or badly damaged aircraft covers two categories of damage: Category 4 is damage that is not repairable on site because special facilities or equipment are needed. Category 5 is aircraft damaged beyond economic repair or missing Aircraft lost or badly damaged r 6 4 Helicopters Fixed wing r 1 3 Aircraft that were lost or badly damaged by service Royal Navy Helicopters Fixed wing Army Helicopters Fixed wing Royal Air Force r 1 4 Helicopters Fixed wing r 1 3 AFTRA Helicopters Fixed wing Source: DASA(Equipment & Personnel Analysis) Helicopters and Fixed Wing Aircraft lost or badly damaged in air accidents

109 Chapter 4 - Aircraft Air Accidents, Casualties and Flying Hours Table 4.2 Number of deaths and major injuries by service caused by aircraft air accidents each year These are deaths and major injuries caused by accidents that happened after the aircrew had taken responsibility for the aircraft. They include accidents during military operations, but exclude aircraft losses caused by 'hostile action'. This table includes accidents to aircraft on MOD Defence Equipment & Support charge regulated through the Airworthiness and Flight Test Regulatory Authority (AFTRA). Service casualties are identified by their serving department and not which service owns the aircraft involved. Personnel killed are those who die within a year of the accident, or are missing as a result of the accident. Major injuries are those that result in an absence of more than 28 days, plus major bone fractures and second or third degree burns Personnel killed Naval Service Army Royal Air Force Allied and foreign Civilians Personnel injured Naval Service Army Royal Air Force Allied and foreign Civilians Source: DASA(Equipment & Personnel Analysis) 1. Includes Royal Marines. 2. These are officers on exchange from allied and foreign forces or serving with UK forces. People Killed in Aircraft Accidents People Suffering Major Injuries in Aircraft Accidents

110 Chapter 4 - Aircraft Air Accidents, Casualties and Flying Hours Table 4.3 Aircraft air accidents and associated deaths and major injuries by type of aircraft from 2004 to 2006 These are deaths and major injuries caused by accidents that happened after the aircrew had taken responsibility for the aircraft. They include accidents during military operations, but exclude aircraft losses caused by 'hostile action'. Personnel killed include those who die within a year of the accident, or are missing as a result of the accident. Major injuries are those that cause an absence of more than 28 days, plus major bone fractures and second or third degree burns. Service casualties Civilian casualties Date Aircraft type Parent service Killed Injured Killed Injured 08 February 2004 Lynx Mk3 Royal Navy March Puma HC 1 RAF March Sea King HC4 Royal Navy March Sea King HC4 Royal Navy March Sea King HC4 Royal Navy March 2004 Merlin Mk1 Royal Navy May Sea King Mk 5 Royal Navy May 2004 Tutor T1 2 RAF June 2004 Tutor T1 2 RAF July 2004 Puma HC1 RAF July 2004 Tornado GR4 RAF September 2004 Canberra T4 RAF September 2004 Lynx Mk 9 Army December 2004 Lynx Mk 3 Royal Navy December 2004 Squirrel HT1 RAF January Sea King Mk 5 Royal Navy February 2005 Lynx Mk 7 Royal Navy February 2005 Lynx Mk 7 Army March 2005 Lynx Mk 8 Royal Navy June 2005 Sea King HC4 Royal Navy July Sea King HC4 Royal Navy August Sea King HAR3 RAF October 2005 Lynx Mk 7 Army October 2005 Tornado F3 RAF April 2006 Chinook HC2 RAF July 2006 Harrier GR7 RAF July Sea King HC4 Royal Navy September 2006 Nimrod MR2 RAF September Augusta A109 Army October 2006 Tornado GR4 RAF November Bell 212 Army Source: DASA(Equipment & Personnel Analysis) 1. The damage to the aircraft was repairable on-site, i.e. the aircraft was not lost or badly damaged (category 4 or 5 of damage). 2. Tutor T1 aircraft are not owned and maintained by the RAF, but carry civilian registrations and are owned and serviced by Bombadier under a Private Finance contract. 3. This major injury related to a member of the US Navy.

111 Chapter 4 - Aircraft Air Accidents, Casualties and Flying Hours Table 4.4 Aircraft lost or badly damaged in air accidents by aircraft role and type These are accidents that happened after the aircrew had taken responsibility for the aircraft. They include accidents during military operations, but exclude aircraft losses caused by 'hostile action'. Only aircraft types that flew in 2006 are shown, except where marked with a footnote. These exclude accidents to aircraft on MOD Defence Equipment & Support charge regulated through the Airworthiness and Flight Test Regulatory Authority (AFTRA). up to Total Years Operational 1974 to 1979 to 1984 to 1989 to 1994 to 1999 to 2006 to 2006 covered Fast Jet Sea Harrier * from 1979 Jaguar from 1973 Harrier GR7 & GR9 * * * from 1988 Tornado GR1 & GR4 * * from 1980 Tornado F2 & F3 * * * from 1985 Typhoon * * * * * * - - from 2004 Helicopters Merlin Mk 1 * * * * * from 1999 Sea King Mk 1/2/5/6/ r from 1969 Lynx Mk 2, 3 & 8 1 * * from 1980 Lynx AH1, 7 & 9 1 * from 1977 Gazelle AH from 1973 Chinook * * from 1980 Puma from 1971 Sea King HC4 (RN) * r from 1979 Sea King HAR 3 * from 1978 Agusta A109 * * from 1984 Apache * * * * * * - - from 2001 Merlin HC3 * * * * * * - - from 2001 Transport and Reconnaissance 2 Islander (Army) * * * from 1989 Nimrod from 1969 Jetstream T2/3 (RN) * from 1978 Hercules from 1967 BAe from 1971 BAe 146 * * from 1983 C17 * * * * * * - - from 2001 Sentry * * * * from 1991 Tristar * * from 1984 Twin Squirrel * * * * * from 1996 VC from 1966 Training Fast Jet Harrier T4 & T8 (RN) 1 * from 1979 Harrier T10 * * * * * 1-1 from 1995 Hawk (RAF) * from 1976 Hawk (RN) * * * * from 1994 Other Tutor * * * * * from 1999 Tucano * * * from 1988 Squirrel * * * * * from 1997 Dominie from 1965 Firefly * * * * * from 1996 Griffin * * * * * from 1997 Kingair * * * * * * - - from 2004 Source: DASA(Equipment & Personnel Analysis) 1. These aircraft types include variants not flown in 2006, for historical comparison. 2. The Canberra PR9 flew in 2006 but has been excluded due to a lack of historical data for each variant.

112 Chapter 4 - Aircraft Air Accidents, Casualties and Flying Hours Table 4.5 Thousand flying hours by aircraft role and type These are thousands of flying hours by operational and training aircraft flown by the Royal Navy, Army and RAF. These exclude flying hours on MOD Defence Equipment & Support charge regulated through the Airworthiness and Flight Test Regulatory Authority (AFTRA).Only aircraft types that flew in 2006 are shown, except where marked with a footnote. up to Total Years Operational 1974 to 1979 to 1984 to 1989 to 1994 to 1999 to 2006 to 2006 covered Fast Jet Sea Harrier * from 1979 Jaguar from 1973 Harrier GR7 & GR9 * * * from 1988 Tornado GR1 & GR4 * * from 1980 Tornado F2 & F3 * * * from 1985 Typhoon * * * * * * from 2004 Helicopters Merlin Mk 1 * * * * * from 1999 Sea King Mk 1/2/5/6/ from 1969 Lynx Mk 2, 3 & 8 1 * * from 1980 Lynx AH1, 7 & 9 1 * from 1977 Gazelle AH from 1973 Chinook * * from 1980 Puma from 1971 Sea King HC4 (RN) * from 1979 Sea King HAR 3 * from 1978 Agusta A109 * * from 1984 Apache * * * * * * from 2001 Merlin HC3 * * * * * * from 2001 Transport and Reconnaissance 2 Islander (Army) * * * from 1989 Nimrod from 1969 Jetstream T2/3 (RN) * from 1978 Hercules from 1967 BAe from 1971 BAe 146 * * from 1983 C17 * * * * * * from 2001 Sentry * * * * from 1991 Tristar * * from 1984 Twin Squirrel * * * * * from 1996 VC from 1966 Training Fast Jet Harrier T4 & T8 (RN) 1 * from 1979 Harrier T10 * * * * * from 1995 Hawk (RAF) * from 1976 Hawk (RN) * * * * from 1994 Other Tutor * * * * * from 1999 Tucano * * * from 1988 Squirrel * * * * * from 1997 Dominie from 1965 Firefly * * * * * from 1996 Griffin * * * * * from 1997 Kingair * * * * * * from 2004 Source: DASA(Equipment & Personnel Analysis) 1. These aircraft types include variants not flown in 2006, for historical comparison. 2. The Canberra PR9 flew in 2006 but has been excluded due to a lack of historical data for each variant.

113 Chapter 4 - Aircraft Air Accidents, Casualties and Flying Hours Table 4.6 Damage rates per ten thousand flying hours by aircraft role and type These are damage rates per ten thousand flying hours of the numbers of aircraft that were lost or badly damaged in accidents that happened after the aircrew had taken responsibility for the aircraft. They include accidents during military operations, but exclude aircraft losses caused by 'hostile action'. Only aircraft types that flew in 2006 are shown, except where marked with a footnote. These exclude accidents to aircraft on MOD Defence Equipment & Support charge regulated through the Airworthiness and Flight Test Regulatory Authority (AFTRA). up to Average Years Operational 1974 to 1979 to 1984 to 1989 to 1994 to 1999 to 2006 to 2006 covered Fast Jet Sea Harrier * from 1979 Jaguar from 1973 Harrier GR7 & GR9 * * * from 1988 Tornado GR1 & GR4 * * from 1980 Tornado F2 & F3 * * * from 1985 Typhoon * * * * * * - - from 2004 Helicopters Merlin Mk 1 * * * * * from 1999 Sea King Mk 1/2/5/6/ r from 1969 Lynx Mk 2, 3 & 8 1 * * from 1980 Lynx AH1, 7 & 9 1 * from 1977 Gazelle AH from 1973 Chinook * * from 1980 Puma from 1971 Sea King HC4 (RN) * r from 1979 Sea King HAR 3 * from 1978 Agusta A109 * * from 1984 Apache * * * * * * - - from 2001 Merlin HC3 * * * * * * - - from 2001 Transport and Reconnaissance 2 Islander (Army) * * * from 1989 Nimrod from 1969 Jetstream T2/3 (RN) * from 1978 Hercules from 1967 BAe from 1971 BAe 146 * * from 1983 C17 * * * * * * - - from 2001 Sentry * * * * from 1991 Tristar * * from 1984 Twin Squirrel * * * * * from 1996 VC from 1966 Training Fast Jet Harrier T4 & T8 (RN) 1 * r from 1979 Harrier T10 * * * * * from 1995 Hawk (RAF) * from 1976 Hawk (RN) * * * * from 1994 Other Tutor * * * * * from 1999 Tucano * * * from 1988 Squirrel * * * * * r 0.03 from 1997 Dominie from 1965 Firefly * * * * * from 1996 Griffin * * * * * from 1997 Kingair * * * * * * - - from 2004 Source: DASA(Equipment & Personnel Analysis) 1. These aircraft types include variants not flown in 2006, for historical comparison. 2. The Canberra PR9 flew in 2006 but has been excluded due to a lack of historical data for each variant.

114 Chapter 4 - Aircraft Air Accidents, Casualties and Flying Hours Table 4.7Aircraft losses and aircrew casualties during military operations RN and RAF aircraft lost and aircrew casualties during operations in Iraq in (Operation Telic) More information on these losses can be found at the MOD website at: Date Aircraft type Service Casualties 1 Cause 22 March 2003 Sea King Mk 7 Royal Navy 4 killed 2 Two helicopters collided in mid-air 22 March 2003 Sea King Mk 7 Royal Navy 3 killed Two helicopters collided in mid-air 23 March 2003 Tornado GR4 RAF 2 killed Engaged by a Patriot missile battery 19 July 2004 Puma HC1 RAF 1 killed Accident at Basrah International Airport 2 injured 30 January 2005 Hercules C3 RAF 10 killed Hostile fire 06 May 2006 Lynx AH 7 Royal Navy 5 killed Hostile fire Source: MOD 1. 8 personnel from 3 Commando Brigade and 4 US aircrew were killed in an accident in involving a US Marine Corps CH-46 Sea Knight helicopter on 21 March Royal Navy and 1 US crew. RAF aircraft lost and aircrew casualties during operations in Afghanistan in (Operation Herrick) More information on these losses can be found at the MOD website at: Date Aircraft type Service Casualties Cause 24 May 2006 Hercules C130 RAF - Hostile fire 02 September 2006 Nimrod MR2 RAF 14 killed Accident near Kandahar Source: MOD

115 The Military Search and Rescue Service Chapter 5 - Military Search and Rescue Introduction The Military Search and Rescue (SAR) Service exists primarily to assist military and civilian aircrew in difficulty, although a large proportion of its work involves assisting shipping or people in distress, both on land and at sea. SAR cover for the United Kingdom and a large area of the surrounding sea is provided 24 hours a day and 365 days a year by the Royal Air Force and the Royal Navy. The SAR force currently consists of RAF and RN SAR Sea King helicopters operating from 8 locations around the UK, specially equipped RAF Nimrod aircraft based in RAF Kinloss in Scotland and 4 RAF Mountain Rescue Teams. Two RAF SAR helicopter units operate in Cyprus and the Falklands. Incidents can include long range medical evacuation from ships at sea, assistance to vessels in distress, cliff fallers, swimmers, divers and surfers. On land many callouts are to search for missing persons or to rescue injured climbers, walkers, riders or those involved in road traffic accidents. SAR units are also often called upon to provide hospital-to-hospital transfers. Missions can include the rescue of foreign mariners, assistance to foreign flagged vessels or to other countries such as France. Additional aeronautical Search and Rescue services are provided by 4 Maritime and Coastguard Agency helicopter units. Details of their activity are not included. The Aeronautical Rescue Coordination Centre In many rescues the RAF Aeronautical Rescue Co-ordination Centre(ARCC) at RAF Kinloss, which controls all military aerial resources, works closely with the emergency services. The ARCC watches over an area extending from the Faeroes in the North, the English Channel in the South, about halfway across the Atlantic Ocean and halfway across the North Sea. The ARCC is permanently manned by experienced personnel, many of whom have served on maritime patrol aircraft or SAR helicopters. It has direct data and voice links with rescue assets in the UK and Europe. Detailed maps and charts are combined with an intimate knowledge of UK topography to enable controllers to match resources to tasks quickly and co-ordinate the rescue operation. More information about Royal Navy and RAF SAR can be found at: and Table 5.1 shows the numbers of incidents, callouts and people moved from 1996 to Table 5.2 shows the number of callouts and people moved by UK Military Search and Rescue units from 1996 to Table 5.3 shows the numbers of callouts and people moved by UK Military Search and Rescue units by type of assistance from 1996 to Table 5.4 shows the numbers of callouts and people moved in each region around the UK from 1996 to Table 5.5 shows the locations of UK Military Search and Rescue callouts in Key Points In 2006, there were 1,767 UK or overseas incidents resulting in 1,948 callouts of Royal Navy and RAF Helicopters, Nimrod aircraft and Mountain Rescue Teams, who moved 1,538 people (Table 5.1). Incidents and callouts rose 8% and 10% respectively, compared with 2005 and the number of people moved rose by 7% (Table 5.1). 95% of UK callouts in 2006 were to civilian incidents (Table 5.2). 50% of UK callouts in 2006 were to Scotland, the South West region or Wales. A further 30% of callouts were to incidents at sea (Table 5.4).

116 Chapter 5 - Military Search and Rescue Table 5.1 Military Search and Rescue incidents, callouts and people moved: Incidents are emergencies attended by Royal Navy or Royal Air Force units whose primary task is Search and Rescue, plus other military aircraft and ships that are available to Aeronautical Rescue Co-ordination Centres. Each Search and Rescue unit attending an incident is described as a callout. An incident may result in one or more callouts. An example is two callouts to a mountain incident, with a helicopter and a Mountain Rescue Team working together to assist a casualty. Callouts are for Royal Navy and RAF units whose primary task is Search and Rescue, plus other military aircraft and ships that attended incidents because they were available to Aeronautical Rescue Coordination Centres. People moved involves moving people from a hostile environment to a safe environment or to a medical facility to receive urgent medical attention and between medical facilities at the request of the NHS. UK SAR units are co-ordinated by the Aeronautical Rescue Co-ordination Centre at Kinloss (Scotland). Plymouth and Aldergrove (N. Ireland) closed in 1997 and 2002 respectively. The overseas SAR units are based at RAF Akrotiri in Cyprus and Mount Pleasant in the Falkland Islands. Incidents Callouts People moved All UK Overseas All UK Overseas All UK Overseas Source: DASA(Equipment & Personnel Analysis) Military Search and Rescue incidents, callouts & people moved

117 Chapter 5 - Military Search and Rescue Table 5.2 Callouts and people moved by UK Military Search and Rescue units: The primary role of Search & Rescue units is to recover military aircrew from crashed aircraft. However the vast majority of callouts are to assist the general public. Royal Navy Search and Rescue helicopters: The Royal Navy's SAR units are 771 Squadron based at the Royal Naval Air Station Culdrose (HMS Seahawk) in Cornwall and the HMS Gannet SAR Flight located at Glasgow Prestwick International Airport. Royal Air Force Search and Rescue helicopters: RAF Sea King rescue helicopters of Nos. 22 and 202 Squadrons operate from six locations - RAF Boulmer, RAF Valley, RAF Lossiemouth, RAF Leconfield, RAF Chivenor and RAF Wattisham. Other helicopters: 'Other' types of helicopters are primarily Sea King helicopters operated by contractors. RAF Mountain Rescue Service: The Mountain Rescue Service HQ is based at RAF Valley and coordinates the RAF's four Mountain Rescue Teams (MRT) based at: RAF Kinloss, RAF Leuchars, RAF Leeming & RAF Valley. RAF Nimrod: Specially equipped Nimrod maritime patrol aircraft, based at RAF Kinloss in Scotland, are always on standby and can be at the scene of an emergency quickly to act as "Top Cover" - an on-scene coordinator for helicopters or ships involved in the rescue operation. Callouts UK Helicopters MRT Fixed wing aircraft Ships Total RN RAF Other Nimrod Other Civilian Military People moved UK Helicopters MRT Fixed wing aircraft Ships Total RN RAF Other Nimrod Other Civilian Military Source: DASA(Equipment & Personnel Analysis)

118 Chapter 5 - Military Search and Rescue Table 5.3 Callouts and people moved by UK Military Search and Rescue units by type of assistance: The types of assistance that involve moving people are: Medrescue: Moving an injured casualty from a hostile environment to a medical facility. Rescue: Moving an uninjured person from a hostile to a benign environment. Medevac: Moving a sick person between medical facilities such as a hospital, or occasionally to move transplant organs. Recovery: Moving people declared dead on scene or confirmed dead on arrival by a qualified doctor. Airlift: Moving military personnel, or their families, on compassionate grounds. The types of assistance that do not involve moving people are: Search: Search for craft, people, etc which does not result in a recovery or rescue. Not Required: Arrived at the scene of an incident but no action needed. Recalled: Recalled from an incident whilst en route. Assist: Either: deploying personnel or transporting equipment to the scene of an incident, or assisting people that excludes moving the persons from the scene of the incident. Top Cover: On-scene assistance, e.g. communications, that does not result in further intervention. Other: Includes False Alarm, Hoax, Precaution, Aborted and Civil Aid. Type of Assistance involving moving people Other Types of Assistance Med- Rescue Med- Recovery Airlift Not Recall Assist Callouts UK Search Top Other total rescue evac Req cover People moved UK Med- Rescue Med- Recovery Airlift Callouts by type of assistance: 2006 total rescue evac All other includes Top Cover, Other, Assist, Recovery and Airlift Source: DASA(Equipment & Personnel Analysis)

119 Chapter 5 - Military Search and Rescue Table 5.4 Callouts and people moved by UK Military Search and Rescue units in each region: Callouts are allocated to regions using coordinates provided by the Search and Rescue Units. The statistical regions of the United Kingdom are the Government Office Regions for England, Wales, Scotland and Northern Ireland. The English regions are specified by local government counties or former counties as follows: North East - Cleveland, Durham, Northumberland and Tyne & Wear North West - Cumbria, Cheshire, Greater Manchester, Lancashire & Merseyside Yorkshire and The Humber - North, South & West Yorkshire and Humberside East Midlands - Derbyshire, Leicestershire, Lincolnshire, Northamptonshire, Nottinghamshire West Midlands - Hereford & Worcester, Shropshire, Staffordshire, Warwickshire, West Midlands Eastern - Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk, Suffolk South East - Berkshire, Bucks, East & West Sussex, Hampshire, Isle of Wight, Kent, Oxfordshire, Surrey South West - Avon, Cornwall, Devon, Dorset, Gloucestershire, Somerset, Wiltshire Callouts UK North North Yorkshire East West Eastern London South South Wales Scotland Northern At total East West & Humber Midlands Midlands East West Ireland Sea r r People moved r UK North North Yorkshire East West Eastern London South South Wales Scotland Northern At total East West & Humber Midlands Midlands East West Ireland Sea Source: DASA(Equipment & Personnel Analysis) Figures for in this table have been revised since UKDS 2006 was published.

120 Chapter 5 - Military Search and Rescue Table 5.5 Map of UK Military Search and Rescue callouts in 2006 Source: DASA (Equipment & Personnel Analysis)

121 Chapter 6 - Land Holdings and Buildings Introduction Land holdings - Tables 6.1, 6.2 & 6.3 1,000 hectares = 3.86 sq miles The Ministry of Defence is one of the largest landowners in the country, with an estate equal to about 1% of the UK land mass. The estate, spread over 4,000 sites, is critical to the effectiveness of the Armed Forces. It is used for training, accommodation and provides a base from which operations can be instigated. The total area of the defence estate is some 366 thousand hectares (about 1,410 square miles), an area similar in size to Cornwall, and includes rights over 125 thousand hectares. It is held solely to support the delivery of defence capability. The Defence Estates Agency manages property assets ranging from barracks and airfields to rural training areas. These are valued at about 18.5bn. The annual cost of new construction, maintenance and property management is over 1billion. For more information, visit the Defence Estates website at: Table 6.1 shows the area of land occupied by each Service and whether owned, leased or with legal rights. The MOD owns 241 thousand hectares of land and foreshore, about the size of Dorset. The Army occupies the largest area at 157 thousand hectares, with access to a further 88 thousand hectares from various rights and grants. Table 6.2 shows the area of MOD holdings by country. England accounts for the largest portion of MOD land holdings, where the MOD owns 190 thousand hectares and has access to a further 34 thousand hectares in rights and grants. Table 6.2 also shows the respective areas of land and foreshore in MOD holdings, by country. Foreshore is the land between low and high tide marks. The MOD owns 222 thousand hectares of land and 19 thousand hectares of foreshore within the UK. Table 6.3 shows the area of MOD holdings by type of use, such as airfields, training areas and barracks. Training areas occupy the largest area at 284 thousand hectares (about 1,100 square miles), including rights over 120 thousand hectares. Table 6.3 also shows the area of land used for agricultural purposes as well as the military uses above. Larger areas of the Defence Estate Salisbury Plain, Wiltshire The Army has been connected with Salisbury Plain since 1897 and the total area of the current estate is just over 38,000 hectares. It is 25 miles by 10 miles (40km by 16km) and occupies about one ninth of the area of Wiltshire. Much of the land is let to farmers or is grazed under license. Approximately 12,150 hectares of the land is used for live firing and as impact areas. Public access is permanently restricted in certain areas for safety reasons. Catterick and Feldom Training Area, Yorkshire The area's military history dates from as far back as Later, General Lord Baden-Powell, based in Richmond from 1908 to 1910, as GOC the Northumbrian Division, was tasked by the War Office to establish a military training centre in the north of England, and he chose Catterick. Its status as a permanent training centre was secured in 1921 and a period of intensive building followed. The land comprising the current training area was acquired between 1921 and 1985 and its current size is 7870 hectares. In conjunction with military training, Catterick Training Area is predominantly used for livestock grazing, while the better in-bye land is farmed more intensively for hay, silage and arable crops. Otterburn Training Area, Northumberland A military presence, in the form of Roman legions, existed in the Otterburn area as long ago as the first and second centuries AD. In 1911, the War Office bought 7,690 hectares of land and the artillery ranges were extended during the Second World War. The training area now consists of some 22,900 hectares of land, all owned by the MOD, and is the largest single impact area range in the UK. It is partitioned into three separate Danger Areas: Redesdale Range, Otterburn Range, Bellshiels Demolition Area and has three Outside Gun Areas. Some 45,000 soldiers use the area each year. The Cheviot Dry Training Area is to the north of these areas. Otterburn Training Area also includes 2 ranges at Ponteland near Newcastle and at Whitburn on the coast between Newcastle and Sunderland. In 2007 DTE Otterburn is to expand to include Ballykinler and Magilligan training areas in Northern Ireland.

122 Dartmoor Training Area, Devon Military training has taken place on Dartmoor since the early 1800s, being used intensively for tactical exercises with live ammunition during the Second World War. Today the MOD uses (by freehold, lease or license) approximately 12,760 hectares of the National Park's 94,400 hectares. The Dartmoor Training Area is used for light forces' exercises, mostly for Royal Marines and other units based in the southwest. There are three Range Danger Areas: Okehampton, Merrivale and Willsworthy, which when this land is not in use for live firing, provide for dry training with blank ammunition. There are smaller training areas at Cramber and Ringmoor. RAF Spadeadam, Cumbria Located on the edge of the Wark Forest between Hadrian's Wall and the Scottish Borders. The site now occupied by the RAF used to be known as the Spadeadam Wastes, mostly remote and uninhabited, until 1957 when the Intermediate Range Ballistic Missile Test Centre was built. RAF Spadeadam is home to the Electronic Warfare Tactics Range, one of two such facilities in Europe, offering a unique facility for the training of aircrews in a hostile Electronic Warfare environment. The Range is contained within Low Flying Area 13, which extends from Hawick in Scotland, South to Alston in England, and from Langholm in the West to Hexham in the East. RAF Spadeadam provides realistic Electronic Warfare training for aircrew, primarily for the RAF, but other NATO Air Forces use the range as well. The land area is about 3642 hectares, making it the largest RAF Station in the UK. The majority of this land is sub-let for timber production to the Forestry Commission. Services' Family Accommodation - Tables 6.4 & 6.5 The Defence Housing Executive (DHE) took over responsibility for housing services from the Armed Services on 1 April In November 1996 most of the MOD's housing stock in England and Wales was sold to a private company, Annington Homes Limited (AHL). The homes required for Service families were leased back, with the condition that the MOD release a minimum number of properties over 25 years for disposal by AHL. On 1 April 2004 the DHE ceased to be a separate Agency and became part of Defence Estates. This organisation is now called the Defence Estates' Directorate of Operations Housing. DE Ops Housing retains responsibility for managing all the Service Families Accommodation (SFA) for the Royal Navy and Marines, the Army and the Royal Air Force in the UK. It operates through a network of Housing Information Centres (HICs), in two regions, which report to the Directorate Head Office located at RAF Brampton in Cambridgeshire. The Director of Operations Housing reports to the Director General of Operations, Defence Estates. Table 6.4 shows the numbers of properties in the UK and the numbers and proportion vacant. Table 6.5 shows the numbers of properties by Standard for Condition.

123 Chapter 6 - Land Holdings and Buildings Table 6.1 Land holdings by parent service area and whether owned, leased or with legal rights, at 1 April each year in thousand hectares Total land & foreshore holdings and rights held Land and foreshore holdings Feehold Leasehold Rights held of which: Royal Navy Land and foreshore holdings Freehold Leasehold Rights held Army Land and foreshore holdings Freehold Leasehold Rights held Royal Air Force Land and foreshore holdings Freehold Leasehold Rights held The Centre Land and foreshore holdings Freehold Leasehold Rights held Other 3 * Land and foreshore holdings * Freehold * Leasehold * Rights held 1 * These holdings include land declared as surplus to defence requirements. A thousand hectares is 3.86 square miles. Source: MOD Defence Estates 1. Rights held are Land and foreshore that are not owned by, or leased to MOD, but over which the Department has limited rights under grants and rights. 2. The Centre includes Defence Equipment & Supply and Central Staff. 3. Includes former Service married quarters leased by the Defence Housing Executive from Annington Property Ltd.

124 Chapter 6 - Land Holdings and Buildings Table 6.2 Land holdings by country and whether owned, leased or with legal rights, at 1 April each year in thousand hectares Land & foreshore holdings and Rights held Land and foreshore holdings Freehold Leasehold Rights held England Land and foreshore holdings Freehold Leasehold Rights held Wales Land and foreshore holdings Freehold Leasehold Rights held Scotland Land and foreshore holdings Freehold Leasehold Rights held Northern Ireland Land and foreshore holdings Freehold Leasehold Rights held Land and foreshore holdings Land England Wales Scotland Northern Ireland Foreshore England Wales Scotland Northern Ireland Source: MOD Defence Estates These holdings include land declared as surplus to defence requirements. A thousand hectares is 3.86 square miles. 1. Rights held are Land and foreshore that are not owned by, or leased to MOD, but over which the Department has limited rights under grants and rights.

125 Chapter 6 - Land Holdings and Buildings Table 6.3 Land holdings by type of use and whether owned, leased or with legal rights, at 1 April each year in thousand hectares Airfields Freehold Leasehold Rights Naval bases Freehold Leasehold Rights Training areas, ranges Freehold Leasehold Rights Barracks, camps Freehold Leasehold Rights Storage, supply depots Freehold Leasehold Rights Research and Development Freehold Leasehold Rights Radio & W/T stations Freehold Leasehold Rights Miscellaneous Freehold Leasehold Rights Defence land used for agricultural purposes Grazing only Full agricultural use These holdings include land declared as surplus to defence requirements. A thousand hectares is 3.86 square miles. Source: MOD Defence Estates 1. Rights held are Land and foreshore that are not owned by, or leased to MOD, but over which the Department has limited rights under grants and rights. 2. Values are included within the usage totals above. 3. Following changes in the tenancies of agricultural land, these data are no longer available. Alternative data are being sought.

126 Chapter 6 - Land Holdings and Buildings Charts to Tables 6.1, 6.2, 6.3 Analysis of land holdings, at 1 April 2007 Parent Service Area Country Type of Use