Official Statistics

Defence equipment cost growth

A Ministry of Defence economic research paper on the increasing cost of UK defence equipment.



This MOD economic research paper is arranged as follows:

  • section 1 provides the background context of UK defence expenditure compared with some NATO neighbours and selected countries and illustrates the trend of declining proportion of UK defence spending to Gross Domestic Product (GDP) from post WW2 to present day

  • section 2 describes a new database and provides a review of the literature on equipment cost escalation

  • section 3 provides the empirical results of rates of cost escalation derived from our database, showing key trends, models and analysis and examines evidence for any pre-and post Cold War changes

  • section 4 concludes

Published 18 December 2012