Wednesday, January 12, 2011

UK MoD needs to plan for economic recovery, says analyst

The UK should look beyond its current defence spending crisis and plan how to cope with budget increases as its economy recovers, a defence analyst has warned.

As the Ministry of Defence (MoD) grapples with the consequences of an eight per cent budget cut made by the Comprehensive Spending Review (CSR) of October 2010, defence and security analyst James Bergeron told a conference at the Royal United Services Institute (RUSI) in London that the UK needs better procurement and "hard-nosed" thinking in the lead-up to 2020.

"Be ready to be able to spend money wisely when it comes your way again," said Bergeron on 10 January. "There is an assumption that the economy will improve [and] governments need to be ready to respond, MoDs need to be ready to respond to the in-rush of cash very quickly.

"If you think not having money is a problem, try having money. That was the experience of the US after 2003 with Iraq, where masses of money was thrown at the Department of Defense."

Source: http://www.janes.com

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