APPENDIX 6
Letter from the Ministry of Defence on
its Efficiency Baseline
We spoke last week about the apparent discrepancy
between the figures given for the MoD's efficiency baseline in
our written answers to the questions posed by the Committee on
the Strategic Defence Review and Mr Balmer's oral evidence on
23 July (Q2955).
As I explained, the former is a broad order
figure for the current financial year based on LTC 98 prices,
and rounded to the nearest £½ Billion; expressed in
cash this would be about £15.8 Billion. This is consistent
with the figure subsequently quoted by Mr Balmer, although he
was referring to the cash value of the baseline in each of the
next three years.
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