Spending Round 2019: Departmental Settlements: Ministry of Defence
(Source HM Treasury; issued Sep 04, 2019)
Table 2.7: Ministry of Defence (in £ billion)
-- 2019-20: 39.5
-- 2020-21: 41.3

Total Department Expenditure Limits (DEL) excluding depreciation
Total DEL is used as an input to calculate the government commitments to grow the defence budget by 0.5% and to spend 2% of GDP on defence.

2.17. The Ministry of Defence settlement ensures the government will continue to exceed its commitment to grow the defence budget by 0.5 per cent in real terms, with a real-terms increase of 2.6 per cent from 2019-20 to 2020-21.

It also means the UK is continuing to exceed its commitment to NATO, further increasing the proportion of forecasted GDP spend on defence above 2 per cent.1

2.18. The settlement makes available £2.2 billion of additional funding, comprising of:

• up to an additional £1.2 billion to ensure the UK’s world-class Armed Forces can continue to modernise, meet ever-changing threats and continue to protect the country’s national security. This includes prioritising key capabilities such as cyber, shipbuilding and the nuclear deterrent;

• £700 million to address the increased cost of employer pension contributions;
• up to £7 million to finalise construction of the British Normandy Memorial; and
• a further £300 million in 2019-20 to press on with funding priority capability programmes.


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