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Row over armed forces funding

By Cathy Newman

Updated on 23 November 2007

New treasury and MoD funding forecasts for Britain's armed forces could provoke further anger from military top brass.

Gordon Brown has been accused by five former military chiefs of failing properly to fund the armed forces.

Now Channel 4 News has discovered that the treasury and ministry of defence are working on new funding forecasts that could lead to further clashes with the top brass.

The forecasts cover "urgent operational requirements" like the cost of equipment needed on the battlefield.

The sting in the tail is that, for the first time, the MoD rather than the treasury will be expected to pay for half of any spending that exceeds this forecast.


New spending rules insist that if the armed forces overspend on certain equipment, half the excess has to come from the MoD budget.

While Gordon Brown has been at a Commonwealth summit in Uganda, back in Westminster he has been ambushed by five former defence chiefs over funding for the armed forces.

Channel 4 News understands the ministry of defence and the treasury are still haggling over which department foots the bill for urgently needed equipment in Iraq and Afghanistan.

The prime minister met his defence secretary last week where, we understand, money was discussed.

These troops returning from Iraq this week have in the past been able to count on a special treasury reserve fund if they need to buy body armour, armoured vehicles and other military equipment - so-called "urgent operational requirements".

But new spending rules insist that if the armed forces overspend on such equipment, half the excess has to come from the MoD budget.


The former defence chiefs have bluntly accused Gordon Brown of being a Scrooge.

Urgent operational requirements have cost £2.3bn since 2001. Now Gordon Brown's old department and the MoD can't agree on what the bill might be in the future.

And if the MoD can't persuade the treasury to come up with a generous forecast, it could end up busting its budget and dipping into its already stretched resources.

No wonder there were no squeals of delight, only howls of protest, about Gordon Brown from the military top brass in the Lords last night.

With that kind of fury, the Christmas treats for troops being handed out today will not buy much seasonal goodwill. The former defence chiefs bluntly accused Gordon Brown of being a Scrooge.

But there was no shortage of Christmas cheer at the Regent's Park barracks in London. The government has been playing Santa, handing out 24,500 Christmas boxes stuffed full of goodies for members of the armed forces who will be spending the festive season overseas.

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