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MOD's Trade, Industry and Contracts Annual Bulletin - published 5 Sept 2019

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MOD's Trade, Industry and Contracts Annual Bulletin - published 5 Sept 2019

Download full Report HERE; or from a copy HERE

The introduction to the Finance & Economics Annual Bulletin: Trade, Industry & Contracts states, "The Finance & Economics Statistical Bulletin series provides figures on the composition and scope of the Department’s expenditure, information on the impact of defence spending on the wider economy, and compares MOD’s spending to that of other departments and countries.

"Trade, Industry & Contracts presents information on MOD spending with industry and commerce, and sets out the numbers, types and values of contracts placed by MOD, major equipment projects and payments made by MOD to its suppliers during 2018/19. Also included is a focus on the top ten companies that received the highest expenditure from MOD. Industry tables provide details of existing Private Finance Initiative (PFI) contracts. Trade data presents information on defence export orders."

Key Points and Trends 

  • £8.4bn     ‘Lightning II’ was the most expensive approved (post-Main Gate) equipment project in 2018. A £309m increase in forecast cost compared with 2017
  • £24.8bn   Paid by MOD Core Department to UK and foreign owned organisations in 2018/19. An increase of £0.5bn from 2017/18
  • 43%         Total MOD procurement expenditure with top 10 suppliers. Slight increase from 42% in the previous year.
  • £3.4bn     Expenditure with BAE Systems PLC, the most to any holding company in 2018/19. Of which 95% was through non-competitive contracts
  • £8.4bnp   Value of new contracts placed during 2018/19. An increase of £2.5bn (43%) compared with 2017/18.
  • £2.5bn     Expenditure against existing Private Finance Initiative projects in 2018/19. An increase from £2.3bn in 2017/18.
  • £14bn      Estimate of identified UK export orders of defence equipment and services in 2018. An increase of £5bn from 2017


Added: 12th November 2019


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