19 Feb 2018 - By

MOD tenders 2018: The latest spending figures

Spending on equipment and support accounts for roughly 40 per cent of the Ministry of Defence budget. The latest spending figures have been released in the document Ministry of Defence: The Equipment Plan 2017 to 2027.

The UK MOD spends up to £20 billion on the procurement of goods and services with industry each year. Find out where the MOD will be spending money below.

What is the Defence Equipment Plan?

The Defence Equipment Plan sets out the defence equipment budget and forecast expenditure and gives a good indication to suppliers where MOD tenders may arise.

The 2017 plan is the sixth publication of the summary. The MOD has said that this plan “demonstrates MOD’s investment and the need to continue progress in driving improvements, reform and efficiency.”

How much will the MOD spend between 2017 and 2027?

Spending on equipment and associated support in the ten years from 2017 is projected to be £179.7 billion, including a £6 billion contiMOD_The_defence_equipment_plan_2017ngency.

Here is a breakdown of the equipment plan over the next ten years:

  • £84.7 billion will be spent on the procurement of new equipment. This is an
  • increase of some 3.3% over last year’s £82 billion.
  • £21.7 billion will be spent on the support arrangements for new equipment.
  • £66.8 billion will be spent on support for existing, in-service equipment
  • As mentioned there will be a corporately held contingency provision of £6 billion. A proportion of this contingency fund will be ring-fenced for Nuclear Enterprise projects.

You can download the Ministry of Defence: The Equipment Plan 2017 to 2027 report here.

What does the plan not include?

The Equipment Plan 2017 to 2027 does not include £9.6 billion of forecast equipment and support project costs.

Defence Expenditure Forecasts

The release of the latest defence expenditure forecasts has come at the same time as the annual assessment of global military capabilities and defence economics.

The Military Balance 2018 report released on 14 February claims that European countries are behind on innovation and must “prepare their armed forces for future challenges.”

The International Institute for Strategic Studies concludes that Britain spent 1.98 per cent of GDP on defence in 2017, just under the 2% target. However, the UK Ministry of Defence has denied these findings and said it calculates its defence spending in line with NATO guidelines.

A spokesperson from the MOD has said:

“These figures are wrong: NATO,’s own figures clearly show that the UK is one of few countries to spend over 2 per cent of its GDP on defence… In the face of intensifying threats, we not only meet but exceed this target, and it remains a base rather than a ceiling.”




Find MOD tenders

The MoD, which spent £39.7bn on defence in 2017, is always looking to build new partnerships that can help to improve innovation and efficiency within the defence sector.

The organisation has most recently stated that they are committed to continuously developing their commercial expertise and are “seeking innovative solutions for our customers in the Armed Forces.”

If you are part of an innovative smaller business that is looking for MOD tenders, now is the perfect time to look for work with the MOD.

Interested in working with the MOD?

Try our service for free today and see what opportunities are already available for your business using DCI.