Additional equipment for British forces engaged in combat operations in Iraq and Afghanistan will now be paid for from the Ministry of Defence (MoD) core budget rather than as an urgent operational requirement (UOR), evoking concerns that other UK defence procurement projects could be hit by a growing funding gap. British Army officers involved in the UOR process have told Jane's that the new budgeting priorities agreed by the MoD and the UK Treasury have diverted more than GBP100 million (USD165 million) from core programme money into funding war activities. UK government ministers had promised to fully fund the war effort from the Treasury reserve since combat and stability operations in Iraq and Afghanistan began, but the global financial crisis has put major pressure on government spending. The new budgeting process seeks to differentiate between projects classed as true UORs -specific to unique threats in Iraq or Afghanistan - and equipment that the treasury thinks will enhance the core capabilities of the armed services over the long term.
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