COMMON SERVICES AGREEMENT IOM/UK UK DEFENCE BUDGET

The Government plans departmental spending through the process of Spending Reviews, the last of which concluded in 2004 and set the Budget until 2007/08. Across the period, the Defence budget is set to increase from £29.7Bn in 2004/05 to £33.4Bn in 2007/08. In real terms (i.e. after inflation) it represents average annual growth of 1.4%. It will amount to the longest period of sustained real terms growth in planned Defence spending.

The Defence Budget

Population

Using the UK 2007 and the IOM 2006 results, the IOM is 1/759th the size of the UK population wise.

The IOM under the Common Services Agreement paid the UK £2,424,118.77 in February 2007 for Defence, Foreign Policy, Inter Departmental Advice and any other services.

Divide 32,067,000,000 by 60,776,238=527.6239 i.e. cost of Defence to each person in the UK. Multiply by number of people on IOM i.e. 80,058=£42,240,514.

Why are we only paying £2,424,118.77 instead of £42,240,514?

Also add on costs for Foreign Policy, Inter Departmental advice and any other services.

On 26th January, 2009, Chief Minister Tony Brown said in reply to a question at a public meeting of the Positive Action Group in Douglas about the Manx Pension Supplement, "If you have not put it, you do not get out". Surely the same rules should apply?

UPDATE

ISLE OF MAN TREASURY (source)

Common Services Agreement Contributions

2008-09 £2559279

2007-08 £2490782

2006-07 £2424119

2005-06 £2364994

2004-05 £2307311

For the last two years contributions have appeared in the Detailed Government Accounts (Light Blue Book)
as an entry under Corporate Strategy Division, prior to this it appeared in the same document under Finance Division. In all cases the entry is described as Contribution to UK Government.

UK MINISTRY OF DEFENCE

The Government plans departmental spending through the process of the spending reviews.

As part of most recent settlement, the Defence Budget is set to increase from a baseline of £32.6Bn in 2007/08 to £36.9Bn in 2010/11 in Total Departmental Expenditure Limit (Total DEL). In real terms (i.e. after inflation) it represents average annual growth of 1.5%. By 2010/11 the Budget will be some 11% higher in real terms than in 1997, and represents the longest period of sustained growth since the 1980s.

The Defence Budget

£million .........................2007-08 ...............2008-09 ...........2009-10 ................2010-11

Resource Budget ..............32,618 .................33,602 .............35,165 ...................36,702

Capital Budget ...................7,404 ....................7,871 ...............8,187 .....................8,871

Total Departmental ..........32,579 .................34,057 ..............35,365 ...................36,890

Expenditure Limit (DEL)

Of which near cash ...........29,411 ................30,763 ...............31,921 ...................33,628

Operations The additional net costs incurred on operations (for example in Afghanistan and Iraq) are not paid for from the Defence Budget, but rather by the Treasury Reserve. Since 2001, the Reserve has provided an additional £9.5Bn on top of the Defence Budget to cover operational costs. This reflects over £3.6Bn that has been approved for Urgent Operational Requirements. This is a process designed to provide commanders on the ground with the equipment they need quickly.

http://www.mod.uk/DefenceInternet/AboutDefence/Organisation/KeyFactsAboutDefence/DefenceSpending.htm

The costs of our operations in Iraq come from the Treasury Special Reserve. The Ministry of Defence identifies the costs of military operations in terms of the net additional costs it has incurred, over and above planned expenditure on defence. The costs for the following financial years were:

2002/03 - £847M

2003/04 - £1,311M

2004/05 - £910M

2005/06 - £958M

2006/07 - £956M

2007/08 - £1,457M

The costs for 2003/04 include the costs of combat operations from 1 April 2003, the costs incurred in maintaining and supporting subsequent peacekeeping operations and the costs of recuperating operational capability afterwards.

The cost of UK Military Operations in Afghanistan The Ministry of Defence identifies the costs of military operations in terms of the net additional costs it has incurred, over and above planned expenditure on defence. The costs of our operations in Afghanistan come from the Treasury Special Reserve. The overall cost of operations in Afghanistan

2001-2002 was £221m

2002-2003 was £311m

2003-2004 was £46m

2004-2005 was £67m

2005-2006 was £199m

2006-2007 was approx £738m http://www.mod.uk/DefenceInternet/FactSheets/OperationsFactsheets/OperationsInAfghanistanBackgroundBriefing.htm

NB: "After 25 years of unbroken growth, the Island's economy remains strong......The Manx economy is still the fastest growing economy in Europe and its GDP is comfortably above that of the UK and the EU." IOM Examiner, Tuesday, February 12th, 2008.

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