Back to news

October 30, 2018 | International, Naval, C4ISR

UK MoD gets budget boost of more than $1B with three programs in mind

By:

LONDON — Britain's Ministry of Defence has been given a £1 billion (U.S. $1.28 billion) spending boost in the Treasury budget announcement Oct. 29, with Chancellor Philip Hammond suggesting the money would be mainly spent on three strategic military programs.

Hammond said the additional money would be available in the coming months. Cyber, anti-submarine warfare and the Dreadnought nuclear submarine build program all got named as destinations for the extra cash.

“As a former defense secretary myself I understand the immediate pressure our armed forces are facing, so today I will provide £1 billion to cover the remainder of this year and next to boost our cyber, and anti-submarine warfare capacity and to maintain the pace of the Dreadnought program,” Hammond told Parliament.

The increase caught many by surprise. Defence Secretary Gavin Williamson has been battling with Hammond for months for extra cash, but a massive funding commitment to the National Health Service made new funds toward security seem unlikely.

Jon Louth, the director for defence, industry and society at the Royal United Services Institute think-tank in London said the additional funding was good news, but fell well short of what is required.

“It's welcome, but comes nowhere near addressing the potential funding gap if you add up all the programs in the equipment plan. It does appear to be a significant increase in percentage terms, although the devil will be in the detail,” he said.

The RUSI analyst said the outcome was “better than we expected a few months ago. Politically people will be chalking that up as a win for Williamson in the context of the wider government budget. One billion pounds is a win,” he said.

Louth cautioned against getting too hung up on the chancellor's announcement about where the extra cash will be spent.

“I suspect when we come to see how the money is used next year it will potentially be a little different from the chancellor's headlines today,” he said.

Defense consultant Alex Ashbourne Walmsley of Ashbourne Strategic Consulting said the new money was a “sticking plaster, but it will buy the MoD a bit more time to work out how to do more with less.”

Earlier this year the MoD received a total of £800 million in funds to keep the program to build four Trident missile equipped Dreadnought nuclear submarines on track.

Some £600 million of that cash came from a £10 billion contingency fund set aside by the government for the Dreadnought program.

Ashbourne-Walmsley described the Dreadnought program as a “money pit.”

The MoD is trying to bridge a funding gap in its £179 billion 10-year equipment plan.

The black hole is put at anywhere between £4 billion and £20 billion by the National Audit Office, the government's financial watchdog. The final figure is dependent, in part, on how effective an ongoing efficiency drive is at the MoD.

The MoD budget for this year is £36.6 billion with 15.6 percent of that spent on equipment procurement and 18.7 percent on support.

The Conservative government is committed to increasing equipment spending in real terms by 0.5 percent a year until 2020.

A long running review, known as the Defence Modernisation Program, has been looking at how British armed forces can adapt and transform to meet the changing and growing military threat, while at the same time balancing the books — an effort that could require capability cuts in several areas.

Publication of that report has already been kicked down the road a couple of times. Although Williamson may announce something before the end of the year, analysts and industry executives expect little of substance ahead of a comprehensive spending review due to take place across all government departments next year.

Hammond appeared to say as much today when he told Parliamentarians the modernisation review will “form the basis for a comprehensive consideration of defense spending next year.”

“The Modernizing Defence Program is increasingly tied into the comprehensive spending review and the 10-year equipment plan in 2019. We might get a whitepaper in late winter or early spring to set up some of the themes but the details won't be out until beyond April,” said Louth.

Some industry executives though are starting to wonder if the modernization program could be published even by April. One executive who asked not to be named, said he wondered whether the comprehensive spending plan might be the trigger for a full blown strategic defense review, particularly if Brexit goes badly and the economy takes a big hit.

https://www.defensenews.com/global/europe/2018/10/29/uk-mod-gets-budget-boost-of-more-than-1b-with-three-programs-in-mind

On the same subject

  • Two French defense heavyweights scoop up Dolphin chip designer

    August 24, 2018 | International, Aerospace

    Two French defense heavyweights scoop up Dolphin chip designer

    By: Pierre Tran PARIS — European missile company MBDA and microchip maker Soitec said Aug. 21 they are acquiring Dolphin Integration, a design firm for low-power chips which has fallen into receivership. The two companies will buy through a joint venture the chip maker, which filed for insolvency July 24. Dolphin Integration has designed chips which are “indispensable” for certain highly classified sectors, including the French nuclear deterrent, a defense source said. MBDA will acquire 40 percent, while Soitec will own 60 percent. MBDA and Soitec will pay a total of some €6 million (U.S. $7 million) to acquire most assets of Dolphin Integration, pay some of the liabilities and inject a significant amount of cash to meet working capital requirements, the companies said. Further details of how the acquisition amount will be shared were not immediately available. All the business and staff will be kept on, but the sale price will not cover all amounts owed to creditors, Dolphin Integration said in an Aug. 21 statement. MBDA is a strategic customer of Dolphin Integration for defense applications since 2004, the missile company said. The acquisition will strengthen its industrial collaboration and long-term commercial pipeline for application specific integrated circuit and system-on-chip products, the company added. “With the support of MBDA, Dolphin Integration will be able to advance its positions in aerospace and defense design,” the missile company said. Other key clients include Airbus Defence & Space, Safran and Thales, besides MBDA, the defense source said. Soitec specializes in chips drawing on fully depleted silicon-on-insulator (FD-SOI) technology, running on low power and at high speed. The acquisition can be seen as an “offensive” move by securing a market upstream for FD-SOI, while MBDA takes a "defensive " step by protecting a strategic supplier, the defense source said. Soitec played an active role in an industry group which lobbied the Elysée president's office to support a European Project of Common Interest, the source said. Such projects are backed by the European Commission for cross-border work on infrastructure and energy. Soitec will seek to strengthen Dolphin Integration in the semiconductor market, to develop and promote products and services in strategic sectors such as mobile devices and infrastructure, data centers, and space and industrial applications, the chip specialist said. Dolphin Integration had annual sales of €17 million for the year to March 31, 2018 and employs 155 staff, of which 130 are design engineers. The company is based in Grenoble. MBDA's interest in semiconductors has sharpened since the U.S. blocked the sale of American chips for the Scalp cruise missile sought by Egypt to arm its fleet of Rafale fighter jets. https://www.defensenews.com/global/europe/2018/08/23/two-french-defense-heavyweights-scoop-up-dophin-chip-maker

  • Contracts for November 8, 2021

    November 10, 2021 | International, Aerospace, Naval, Land, C4ISR, Security

    Contracts for November 8, 2021

    Today

  • Raytheon Unveils Platoon-Sized Infantry Combat Simulator

    December 4, 2019 | International, Land

    Raytheon Unveils Platoon-Sized Infantry Combat Simulator

    By Matthew Cox Defense contractor Raytheon has just unveiled a new virtual training simulator designed to immerse full platoons of soldiers at a time into realistic battlefield settings, where they can shoot enemy targets with individual weapons and even call in close-air support. Raytheon began showing off its new Synthetic Training Environment Soldier Virtual Trainer at the Interservice/ Industry Training, Simulation and Education Conference (I/ITSEC) in Orlando, Florida this week. The prototype system is Raytheon's attempt to satisfy the U.S. Army's need to create a synthetic training environment that dramatically increases the level of realism in training. "They need a way to get soldiers into the same virtual environments that they have had for tanks and helicopters for decades," Harry Buhl, lead investigator for synthetic training at Raytheon, told Military.com. "When you do that in an immersive, synthetic environment, you can go beyond the [live-fire] range -- you can put people soldiers into urban scenarios or into combat-type scenarios ... so you can stress them at a higher level and gain higher levels of proficiency." The Army recently told industry officials that it will begin seeking prototype solutions early next year designed to develop similar types of simulator training technologies. "We intend to compete for that opportunity," Buhl said. Currently, Raytheon is demonstrating its new soldier virtual trainer to simulate an observation post for two soldiers. But it can be configured for much larger units, Buhl said. "We can support up to a platoon ... that is something that the Army hasn't asked for. But the technology path that we have chosen allows us to actually do this for a platoon-sized unit over a large area. So we have the capability to do squad training or situational training exercises which we believe will be the next step as the Army goes down this path," Buhl said. The new trainer uses very high-quality graphics, similar to high-end games and relies on virtual-reality headsets and instrumented weapons, he said. "You can pick up a weapon, and the weapon is in that virtual environment," Buhl said. "When you put your cheek to the stock of that weapon, you have that same sight [picture] as you would in real life, but you are in a virtual environment." The trainer relies on commercially available tracking sensors, roughly two-inch cubes, that are spread out across any area, Buhl said. "The software package that we put behind them will link them together and make them smart enough to understand where you are in the environment so that you can be realistically replicated in the synthetic environment," Buhl said. "As you ... take a knee, go to the prone, you are doing the same things in that synthetic environment. "If you were training on a basketball court, you could put these things up in the rafters of the basketball court and just leave them there." Eventually, the sensor technology will be built into the headsets, so there will be no need for tracking sensors, Buhl added. One of the features the Army is looking for is the ability for soldiers to train for calling in artillery or close-air support, Buhl said, describing how Raytheon's simulator shows realistic training distances. "You are ... on a hilltop looking down the valley, you've got some threat vehicles few miles away," he said. "You have [Air Force] A-10s circling overhead; they come down and you control them and call in their attack, so that you can apply close-air support directly on those targets." The simulator also allows soldiers to engage enemy targets with individual weapons at realistic ranges, another feature on the Army's wish list, Buhl said. If soldiers are using a rifle with an effective range out to 500 meters "you can engage targets out to 500 meters," he said. The trainer will also allow units to train for scenarios involving checkpoints that could call for the need to escalate from using non-lethal devices to lethal force, Buhl said. The Army is now developing the Integrated Visual Augmentation System (IVAS), a Microsoft-based headset that uses augmented reality to equip soldiers with a heads-up display allowing them to sight their weapon and view key tactical data. Scheduled to be ready for fielding in fiscal 2021, IVAS will also allow soldiers to train in synthetic training scenarios such as mission rehearsals before going on a live operation. Buhl said Raytheon used virtual-reality headsets because it "provides an immediate capability" the Army could take advantage of, but the system will be adaptable to work with augmented-reality headsets used with IVAS. "All of this is ... able to be packed up in a Pelican case and taken anywhere in the world," Buhl said. "It's also cloud-enabled, so if you did want to link into a networked training exercise with soldiers in another location, with tanks or helicopters that are in synthetic simulators, you could do all of that." https://www.military.com/daily-news/2019/12/03/raytheon-unveils-platoon-sized-infantry-combat-simulator.html

All news