Foreword by the Secretary of State for Defence

Rt. Hon. Geoff Hoon MP, Secretary of State for Defence

In previous years the Ministry of Defence has produced two separate, but important, performance documents – the Annual Performance Report and the Departmental Resource Accounts. We have combined these documents into a single publication this year, which is titled the Annual Report and Accounts. This is a significant development which not only accords with best practice in the commercial private sector but also gives a more balanced understanding of our activities as measured against both the Parliamentary and the Treasury control regimes.

Departmental business in the latter part of the financial year was dominated by events in Iraq. Operation TELIC saw 46,000 UK personnel deployed to the Gulf in just eleven weeks. This included some 5,000 Reservists, representing the largest mobilisation of Reserves since the 1950s. On 20 March 2003, the US-led coalition began military operations against Saddam Hussein's regime, and in just over four weeks the regime was removed. Once again, British forces performed many difficult and demanding tasks with great distinction. They continue to do so as the task moves to one of security and humanitarian support. I would like to pay tribute to our Armed Forces, and in particular to those Service personnel who lost their lives in operations in the Gulf.

Iraq was by no means the only focus of our attention. UK forces acted as a force for good around the world, including in Afghanistan, Sierra Leone and the Balkans. They were also very active at home. More than 19,000 personnel provided emergency fire cover and during fifteen strike days attended nearly 20,000 incidents, ensuring essential safety cover and significantly reducing the risks to both life and property.

Throughout the year our Servicemen and women demonstrated, through their dedication and professionalism, why they are respected throughout the world. It is only right that we provide them with the facilities they require. During 2002/03 we were able to improve a further 1,440 Service family houses to the highest standard, surpassing our target of 1,200. Over 90% of families are now housed in high-standard properties. We continued to modernise training, establishing the Defence Academy in April 2002 along with the formation of the Directorate General Training and Education in October 2002. These improvements have been reflected in our recruitment: 2002/03 was the most successful recruiting year for a decade.

Security and defence policy development during the year focused on two themes: the evolution of Europe's security arrangements through the complementary improvement of NATO's and the European Union's capabilities; and the development of our response to the increasing threat from international terrorism and the spread of Weapons of Mass Destruction. In July 2002, we published a "New Chapter" to the Strategic Defence Review, which was the Department's response to the new security environment following the events of 11 September 2001 and the threat of international terrorism. We also agreed to a US request to upgrade the ballistic missile early warning radar at RAF Fylingdales for missile defence purposes.

The 2003 Equipment Programme was dominated by the outcome of the 2002 Spending Review which enabled significant new investment in the types of equipment identified in the New Chapter to the Strategic Defence Review. This included further investment in 'network enabled capability', resulting in better communications between sensors, decision-makers and weapons systems providing for swifter and more accurate responses.

The Department fully met the target to keep net financial resource expenditure for routine operations within budgeted limits. The total underspend of £63M against the Departmental Expenditure Limits – less than 0.3% of the budget – represents a position well within performance measurement parameters. Following further significant progress against the requirements of the National Audit Office, the Department has only one outstanding Resource Account qualification issue, relating to stock systems. Defence remains a complex business and our progress towards an unqualified Resource Account has been acknowledged as encouraging by the Comptroller and Auditor General.

As this Report highlights, this was another extraordinarily demanding year for our Armed Forces and civilian staff. They helped to make the world a safer place, facing every task and new challenge with their customary professionalism and commitment.

Last Updated: 3 Dec 03