Michael Evans, Defence Editor
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The cost to the taxpayer of the two military operations in Iraq and Afghanistan has nearly doubled in a year to more than £3 billion, the Commons Defence Committee has revealed.
The rising bill for new urgently-required equipment, depreciation costs of armoured vehicles and other over-used military kit and the award of a £2,500 operational bonus for all the troops have contributed to the unprecedented increase.
The MPs on the committee said that even though troop numbers were supposed to be coming down in Iraq, the financial burden is still high.
In 2006/2007, the cost of the Iraq operation was £956 million, but the forecast for 2007/2008 is more than £1.6 billion, an increase of 72 per cent.
For the campaign in Afghanistan where troop numbers have risen sharply since 2006, the cost in 2006/2007 was £742 million and the forecast for 2007/2008 is also more than £1.6 billion, a rise of 122 per cent.
The MPs said: “These are clearly very significant increases, not least with regard to operations in Iraq. While we are aware that the drawdown of forces in Iraq will not immediately lead to a comparable decline in costs, nonetheless, the magnitude of the increase in costs estimate there is surprising.”
The MPs said that the increased costs appear to have been “unforeseen”.
Part of the reason for the jump in costs is that the Ministry of Defence now has to put a value on the depreciation of all the equipment that has been used in the two campaigns.
The Treasury has demanded that the MoD should reflect the accountancy rules adopted by business and industry when assessing its annual financial costs.
With equipment such as armoured Land Rovers and other forms of armoured transport being used on rough terrains and in hostile environments, the depreciation has been significant.
James Arbuthnot, chairman of the Commons Defence Committee, said: “Few people will object to the investment being made in better facilities and equipment for our troops in Iraq and Afghanistan. However, this estimate represents a lot of public money. The MoD needs to provide better information about what it is all being spent on.”
Nick Harvey, Liberal Democrat defence spokesman, said: “This clearly shows how the Iraq war is continuing to bleed our finances dry, leaving soldiers in Afghanistan overstretched and under-equipped.”
“If the Government, supported by the Conservatives, had not been so keen to suport the illegal war in Iraq, the Afghanistan operation could have been much better resourced,” he said.
The Defence Committee report said that the MoD had originally estimated that Iraq would cost £955 million in 2007/2008 and Afghanistan, £964 million.
But the latest estimate was that each operation would now cost more than £1.4 billion, an increase of around 50 per cent for both theatres and a total annual bill of nearly £2.9 billion.
However, when the indirect costs of depreciation were included, the overall bill for the two campaigns for 2007/2008 had jumped by the equivalent of 94 per cent to nearly £3.3 billion.
The MPs said: “We expect the MoD to provide us with a full explanation for the very significant increase in the indirect resource cost of operations.”
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Remind me please somebody, why are we involved and what British troops are actually doing over there. Yuo see I cannot for the life of me see what they are 'protecting' this country against?
Ralph Ryder, Ellesmere Port, UK
I think its about time funding has been increased for the men and women who have to do the dirty work and who risk their lives. Well done Mr Brown for doing something that your predecessor didn't have the gutts to do.
James, London, UK
I did a quick math. There are 31.6m tax payers in UK. This each is paying over 1,000 pounds to sustain Mr. Bush's war!
Harish, Cedar Park, USA/TX
And you think all the new tax's are 'green' or to save the middle class's from wine consumption.
Andy, France,
How much money is there? Where does it all come from? Surely this government can't keep finding money from what seems a bottemless pit to finance the crazy wars in Iraq and Afganistan. All this money could surely be put to a better and more meaningful use at home.
It would be very educational to be told the answer to all these questions. Or is the man in the street expected to know all about where all the money comes from?
T. Elcock, Cambridge,
Thank goodness we will at least be getting free oil by way of compensation from Iraq. How wise of our leaders to anticipate our future need for fuel and to topple the terrible dictatorship of Saddam Hussain and bring peace to this region. It is hard to put a price on freedom but around six billion pounds worth of oil sounds about right.
Will the chancellor use the savings on the cost of oil imports to rescue our pensioners from fuel poverty this winter or will he use the money to recover our economic and social structure?
Or will the arms industry profit in some way so that a few ex ministers can have cushy jobs and a large retirement pot. The rest of us will of course fund the war out of the taxes we pay. With this government in power we really should learn more about tax avoidance. Of course most of us don't have enough money left after taxes to employ a good tax accountants.
Tony Woods, London, UK
Wow. And we only 'half went to war'. We did the 'war light' thing. You know, with half equipped soldiers, and sub-standard vehicles, and just the one helicopter to around. Imagine how much it would have cost if we'd gone all the way and equipped our Army.
What did the MOD expect ? War on the cheap.
Richard, Norwich, UK.
Maybe i will not be able to put this across as elequant as a times reporter as i am a serving Royal Marine, however you are correct this is a burden to the country but not as big a burden as the non working non tax paying residents in the UK.
Within the services you have eighteen year old lads asked by the goverment to fight, kill and maybe lose their life for about £16,000 a year. You can earn that in benefits in this country and unlike the troops not have to pay tax.
This country needs something in place to ensure that all people who get benefits give something back to the country by way of "community based work" This will ease the burden this country is suffering. This great country of ours must stop ttreating our troops as second class citizens.
Barry Buddon, Lympstone, England
I am very interested in knowing what deal the UK has with the USA regarding oil revenues. Iraq has several pipelines pushing out crude daily. How much of this goes directly to the US reserves?
How much goes to the UK as an ally?
For how long will the oil "export" continue?
By knowing some of these answers we will find out why Iraq was invaded in the first place.
jaime gamell riera, Madrid, Spain
Well, as they say in America, "you can't put a price on freedom." The rewards for spending billions and billions of tax-payers money is that Afghan kids can now go to madrassa's where they are taught to hate the West. And if we have to bankcrupt our own country so we can support the freedom of middle-eastern countries to hate us, it will be worth it. It makes me feel all warm inside knowing our country sucks and our school system sucks, but as long as we're spreading the good word of freedom throughout the world, who can be upset with that? May the Angels of Freedom (or are they eagles?) sore from the heavens and bless the world with our loving generosity and gift of peace. And may those countries thank us some other time, when they're figured out that we are their saviours and they owe us everything.
Andrew Nyazai, Godalming, UK