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
| £million | 2004-05 | 2005-06 | 2006-07 | 2007-08 |
| Resource Budget | 31,370 | 32,449 | 32,698 | 33,018 |
| Capital Budget | 6,327 | 6,880 | 6,970 | 7,600 |
| Total Departmental Expenditure Limit (DEL) | 29,710 | 30,888 | 32,067 | 33,447 |
Population
| UK POPULATION | Estimate July 2007 | 60,776,238 |
| Census 29 April 2001 | 58,789,194 | |
| IOM POPULATION | Census 30th April 2001 | 76,315 |
| Census 24th April 2006 | 80,058 |
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.
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.