Brexit & EconomyPoliticsPM breaks MoD’s main accounting rules

PM breaks MoD's main accounting rules

The PM breaks MoD accounting rule to free up hundreds of millions of pounds for £4bn contract for two aircraft carriers

Prime Minister Gordon Brown has broken one of the
Ministry of
Defence
(MoD)’ main accounting rules by freeing up hundreds of millions of
pounds to give a £4bn contract for two aircraft carriers the go-ahead.

However, in return the MoD has been forced to order a ‘no-holds-barred’ look
at other defence projects which said to create new uncertainty over other
contracts, the Financial Times reports.

Under the accounting changes, defence officials will be able to move some
funds between the three years of the Comprehensive Spending Review and use funds
allocated to annual capital spending for resource spending. This flexibility
means officials can more easily delay, cancel or reconfigure commitments.

The ‘examination of the defence equipment programme’ will be ‘short and
sharp’ to prioritise topline needs and squeeze savings from industry, according
to defence sources.

Further reading:

Departments shun plans for ‘shadow’

MoD aims to recruit qualified finance chief

Read
the Financial Times story

Related Articles

Financial Secretary to the Treasury on cryptocurrency, Brexit and taxing the digital economy

Brexit Financial Secretary to the Treasury on cryptocurrency, Brexit and taxing the digital economy

4w Alia Shoaib, Reporter
HMRC’s refusal to raid top Tory donor Lycamobile to be investigated by MPs

Big Four HMRC’s refusal to raid top Tory donor Lycamobile to be investigated by MPs

4w Alia Shoaib, Reporter
Spring Statement 2018: Spring has sprung as chancellor finds his inner Tigger

Budget Spring Statement 2018: Spring has sprung as chancellor finds his inner Tigger

2m Emma Smith, Managing Editor
Spring Statement live feed

Budget Spring Statement live feed

2m Emma Smith, Managing Editor
Spring Statement 2018: 5 things to look out for

Brexit & Economy Spring Statement 2018: 5 things to look out for

2m Alia Shoaib, Reporter
Financial Secretary to the Treasury on Brexit, Spring Statement, Making Tax Digital and Carillion

Politics Financial Secretary to the Treasury on Brexit, Spring Statement, Making Tax Digital and Carillion

4m Emma Smith, Managing Editor
David Davis, Secretary of State for Exiting the European Union

Brexit & Economy David Davis, Secretary of State for Exiting the European Union

4m Alia Shoaib, Reporter
Philip Hammond, Chancellor of the Exchequer

Brexit & Economy Philip Hammond, Chancellor of the Exchequer

4m Alia Shoaib, Reporter