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Ministry of Defence is seeking to cut a fifth of its military maintenance budget have raised fears of job losses at Devonport Dockyard. According to the Financial Times the MoD is aiming to cut £1.5billion
REPORTS that the Ministry of Defence is seeking to cut a fifth of its military maintenance budget have raised fears of job losses at Devonport Dockyard. According to the Financial Times the MoD is aiming to cut £1.5billion from its £7.5billion annual military maintenance budget. Contracts being renegotiated by Devonport operator Babcock and the MoD’s procurement arm, Defence Equipment and Support (DE&S), are understood to be worth about £1billion. DE&S spends about half its budget on servicing equipment with companies including Babcock International and BAE Systems, according to the FT. Up to eight contracts have been renegotiated, so far, saving £500million. Cuts of that scale could potentially lead to hundreds of jobs losses, according to sources. But Peter Rogers, chief executive of Babcock, told the FT: “There is not only one way to skin the cat – there are hundreds and it’s a matter of finding the best way.
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