§ Mr. Hoon
The Government have decided that, subject to parliamentary approval of the necessary Supplementary Estimate for Class VI Vote 1 Defence for 1999–2000, the following changes should apply:
- (a) The overall limit will increase by £584.282 million from £22,283.085 million to £22,867.367 million.
- (b) The Ministry of Defence Departmental Expenditure Limit will be increased by £582.9 million from £22,280.341 million to £22,863.241 million.
- (c) The Ministry of Defence Operating Cost Limit will be increased by £778.972 million from £15,918.341 million to £16,697.313 million.
This will cover the additional expenditure incurred by UK forces on operations in Kosovo and Bosnia during the current financial year which are estimated at just under £400 million and £112 million respectively. The figure also includes full take-up of the Ministry of Defence's entitlement to End Year Flexibility of £74 million.
The Supplementary Estimates will also provide for changes in the general pattern of expenditure, including adjustments between the Defence Procurement Agency's equipment programme and the operating costs programmes.678W
As the increase in the Defence Expenditure Limit will be met from the Reserve, which is part of the Government's overall spending plan, it will not add to the planned total of public expenditure in the current year.