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The Defence Committee—Third Report "Defence Equipment 2009" cites an article from the Financial Times website stating that the Chief of Defence Materiel, General Sir Kevin O’Donoghue, had instructed staff within Defence Equipment and Support (DE&S) through an internal memorandum to reprioritize the approvals process to focus on supporting current operations over the next three years; deterrence related programmes; those that reflect defence obligations both contractual or international; and those where production contracts are already signed. The report also cites concerns over potential cuts in the defence science and technology research budget; implications of inappropriate estimation of Defence Inflation within budgetary processes; underfunding in the Equipment Programme; and a general concern over striking the appropriate balance over a short-term focus (Current Operations) and long-term consequences of failure to invest in the delivery of future UK defence capabilities on future combatants and campaigns. The then Secretary of State for Defence, Bob Ainsworth MP, reinforced this reprioritisation of focus on current operations and had not ruled out "major shifts" in defence spending. In the same article the First Sea Lord and Chief of the Naval Staff, Admiral Sir Mark Stanhope, Royal Navy, acknowledged that there was not enough money within the defence budget and it is preparing itself for tough decisions and the potential for cutbacks. According to figures published by the London Evening Standard the defence budget for 2009 is "more than 10% overspent" (figures cannot be verified) and the paper states that this had caused Gordon Brown to say that the defence spending must be cut. The MoD has been investing in IT to cut costs and improve services for its personnel.

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Ministry of Defence (United Kingdom)