{"id":24344,"date":"2018-03-29T18:04:50","date_gmt":"2018-03-29T18:04:50","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2018\/03\/29\/uk-releases-extra-funding-but-military-relevancy-challenges-remain\/"},"modified":"2026-08-07T22:05:56","modified_gmt":"2026-08-07T22:05:56","slug":"uk-releases-extra-funding-but-military-relevancy-challenges-remain","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/global\/europe\/2018\/03\/29\/uk-releases-extra-funding-but-military-relevancy-challenges-remain\/","title":{"rendered":"UK releases extra funding, but military relevancy challenges remain"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON and LONDON \u2015 The United Kingdom has announced a plan to add \u00a3800 million (U.S. $1.13 billion) to the Ministry of Defence\u2019s budget for the upcoming financial year, as top defense officials acknowledge that the <a href=\"https:\/\/www.defensenews.com\/2017\/04\/26\/uk-defense-equipment-plan-at-risk-of-becoming-unaffordable\/\" title=\"\" class=\"\" target=\"_blank\">cost<\/a> to keep Britain\u2019s military in top shape will remain a challenge.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The vast majority of that funding, \u00a3600 million, will be withdrawn from the \u00a310 billion contingency fund for the <a href=\"https:\/\/www.defensenews.com\/naval\/2016\/12\/21\/new-uk-defense-agency-to-oversee-nuclear-missile-subs-construction\/\" title=\"\" class=\"\" target=\"_blank\">Dreadnought submarine program<\/a>, announced in the 2015 Strategic Defence and Security Review. The contingency is held by the Treasury, which has agreed to release the funds in an effort to keep the \u00a331 billion Trident missile-armed submarine program on track.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A further \u00a3200 million will be added to the budget next year in the \u201c<a href=\"https:\/\/www.gov.uk\/government\/publications\/supplementary-estimates-2017-18\" title=\"\" class=\"selected-link\" target=\"_blank\" data-original-title=\"\" style=\"\">Supplementary Estimates<\/a>\u201c released by the Treasury in February 2018. While the \u00a3200 million was assigned to the current financial year, the MoD said it had brought forward payments due next year, releasing extra cash for the 2018-19 budget.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cToday\u2019s announcement will ensure that the work to rebuild the U.K.\u2019s new, world-class nuclear submarines remains on schedule, and it\u2019s another sign of the deep commitment this government has to keeping our country safe,\u201d Prime Minister Theresa May said during a public appearance Wednesday.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The announcement comes as the U.K. and its NATO allies have <a href=\"https:\/\/www.defensenews.com\/global\/europe\/2018\/03\/28\/uk-officials-salisbury-chemical-attack-requires-rethinking-deterrence\/\" title=\"\" class=\"\" target=\"_blank\">accused Russia of organizing<\/a> an attempted assassination using a nerve agent on British soil. The ongoing fallout from that issue has included the expulsion of Russian diplomats from 20 countries.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The issue of funding all of the U.K.\u2019s defense priorities has been underlined <a href=\"https:\/\/www.defensenews.com\/global\/2017\/06\/09\/post-uk-election-defense-will-have-to-fight-hard-for-what-it-needs\/\" title=\"\" class=\"selected-link\" target=\"_blank\">since Britain voted to leave the European Union<\/a> in 2016, which saw the pound\u2019s value drop just as the MoD signed contracts for a series of major modernization programs. At the same time, the speed at which technology is developing means a constant stream of investment is needed to keep up with peer competitors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Taken together, the reality is that defense is \u201can expensive thing to deliver if you\u2019re in the premier league,\u201d said Gen. Gordon Messenger, vice chief of the Defence Staff. \u201cAnd we\u2019re determined to remain in the premier league.\u201d<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/global\/europe\/2018\/02\/01\/auditors-say-britain-cant-afford-its-10-year-defense-equipment-plan\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"169\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/Venator-110-Export_1-c-BMT-Defence-Services-2016.png.png?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Auditors say Britain can\u2019t afford its 10-year defense equipment plan<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The funding gap for the plan is anywhere between \u00a34.9 billion and \u00a320.8 billion, or as much as U.S. $29.52 billion, according to the National Audit Office.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">\u201cI don\u2019t think that we should be too apologetic about the fact this is a tough gig to try and afford, and what we have to do is make sensible decisions within the budgetary envelope that we are afforded by our government,\u201d Messenger added.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Messenger and Stephen Lovegrove, the permanent secretary of the MoD, laid out their views on the defense budget during an exclusive interview with Defense News on March 27 in Washington, D.C.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fueling fears about affordability, an April 2017 report from a government watchdog warned that the U.K. modernization plan \u201cis at greater risk of becoming unaffordable than at any time since its inception in 2012,\u201d with a potential overrun of \u00a320 billion over the next decade. But Lovegrove downplayed the risk there, noting that the figure assumes an absolute worst-case scenario, including that the pound will remain at extreme lows for the entire 10-year period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In terms of the pound, Lovegrove said: \u201cObviously we would hope that it would come back up a bit more because it does represent, if it were to stay at that level forever, a bit more of an affordability challenge.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But he asserted the next few years will be unaffected either way, thanks to government hedging on the value of the pound \u2015 and while \u201cat the it\u2019s a pressure, [but] who knows what it will be like in three years\u2019 time?\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And Lovegrove seems to have found the silver lining on this particular cloud, noting \u201ca low pound is good for our exporters. We are the second-largest defense-exporting industry in the world. And if other parts of the U.K. defense establishment can benefit from a low pound briefly, then I hope that they will be able to do so.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The British government has increased its defense budget for the upcoming year, but funding will remain a challenge for many years to come, top defense officials agree.<\/p>\n","protected":false},"author":7,"featured_media":52090,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":46,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[160,46,11,16,36],"tags":[],"coauthors":[3378,3351],"class_list":["post-24344","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-europe","category-global","category-naval","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"TZSTKTXMJNDQBBWYBOXMZQZWUM","arc_canonical_url":"\/global\/europe\/2018\/03\/29\/uk-releases-extra-funding-but-military-relevancy-challenges-remain\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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