Something that comes as no surprise to most of us: I got it wrong at Iraq inquiry admits Brown: Cash for military WAS cut back As if this wasn't bad enough, all the equipment procured under UORs since 2001 has placed an additional burden on the Defence budget for staffing, training and maintenance while equipment procured under normal funding has been consumed or worn out much faster than planned under original assumptions owing to nine years of continuous conflict in hostile environments. Also, the Defence Budget was predicated on the 1998 Strategic Defence Review but the Government then proceeded to double the commitments on which it was based. Until then, a 1.5% increase in Defence spending didn't look too bad even though 'defence inflation' was running at a much higher rate. There was a triple whammy in that Resource Accounting & Budgeting (RAB) was also implemented in the MoD in 2001. As this imposed an initial 6% penalty (now 3.5%) per annum on all capital items (real estate, storage facilities, equipment, etc) owned by the MoD, there was a rush to dispose of many of its assets including come-in handy items (e.g. equipment and infrastructure only needed in war). The MoD then banked on clawing back the cash savings it had accrued in disposing of these assets but this was easier said than done.