2B Interface, the broad-ranging staffing and recruitment agency providing manual, skilled, office and management personnel from Britain and many other countries, has launched a new bespoke service for the defence sector and its first and second tier contractors.
Launched at the recent Farnborough Air Show, the new service encompasses a range of temporary staff with relevant skills including office, managerial, and manufacturing.
The UK defence budget currently stands at 5.8% of total government expenditure and is one of the departments of state that has not seen its budget ring-fenced as part of the forthcoming Comprehensive Spending Review. According to the latest figures (2007), the UK is the second highest spender (in cash terms) on Defence in the world behind only the United States. At 2.5% (2006) of GDP, the Defence Spending of the UK is above the NATO European average.
Secretary of State for Defence, Dr Liam Fox, stated in a speech at the Airshow that: “The defence programme is entirely unaffordable – especially if we try to do what we need to do in the future while simultaneously doing everything that we've done in the past.”
The defence department is conducting a strategic review to update its spending priorities but, regardless, faces cuts of up to 20% in the government's autumn comprehensive spending review. The Strategic Defence Review is examining what the British armed forces may have to learn to live without. It is the first such review since 1998.
Dr Fox confirmed that an announcement following a major review of defence spending will be made in the last week of October. The decision was previously expected to be released at Christmas.
He went on to say: The industry's long-term prosperity also rests on offering better value for money. Without cost containment in the current programmes, we have no option but to either cut the programmes under way, or curtail investment in future programmes.
The National Audit Office has also warned that the Department must stop living beyond its means and budget realistically - instead of running up a shortfall of £36bn over the next decade.
Beatrice Bartlay, Managing Director, 2B Interface, stated: “The Ministry of Defence is committed to making value for money savings worth £2.7bn over the CSR period to reinvest in Defence. Initiatives to achieve this include: a 5% year-on-year reduction in the MoD’s administrative overhead, including a 25% saving in the Department’s Head Office in London and the continued simplification of single Service Budgetary and headquarters structures.”
“The Comprehensive Spending Review will call for even greater budget reductions. For contractors to the MoD what will rapidly become paramount will be the need to deliver cost-effective solutions in everything they supply from front line hardware, to repairs and maintenance.”
According to the latest press reports the army may be expected to offer to put much of its current heavy tank and artillery capability into storage, while the navy will expect to see reductions in its current fleet and in future orders for Type-45 destroyers and the Type-26 frigate, which has not yet been built and is not expected to see service until 2026.