Got this off hansard - anyone here got any views? There seem to be some interesting assumptions within it... Armed Services Capacity Dr. Fox: To ask the Secretary of State for Defence pursuant to the answer of 3 December 2007, Official Report, column 568, on armed services capacity, if he will place in the Library a copy of the assumptions and methodology used to estimate the cost of three infantry battalions at £700 million; and if he will make a statement.  Mr. Bob Ainsworth: While the costs of an infantry battalion are not generally held centrally (as these figures are extensive and spread over a wide variety of budgets), a set of general assumptions on which to base an illustrative costing of adding three infantry battalions has been developed. These costings are dependent on the inter-relationship of a range of complex factors. Each of the assumptions that have been made is regarded as the most reasonable for indicative costing. Costs would break down broadly into two categories: the initial start-up and capital investment costs, and the annual running costs. 17 Dec 2007 : Column 1033W Changes to these assumptions (particularly on the unit role or accommodation requirements) could result in significant changes to the overall total. The following assumptions informed the costing: Three light role infantry battalions, based in the UK, not held at high readiness and consisting of 625 personnel per battalion; Three new barracks (furnished and equipped to standard). It is assumed that there are no existing empty barracks that are fit for purpose in which to accommodate the battalions, and co-location on a single site is unlikely; The requirement for new single living accommodation (furnished and equipped to standard) (400 SLAs per battalion); The requirement for new service family accommodation (furnished and equipped to standard) (225 SFAs per battalion); Build is on land currently owned by MOD (therefore, there is no cost assumed for any requirement to purchase land); There are no appreciable costs to gain planning permission or prepare the sites and access to them; That over the period of implementation, that this will not materially change the totality of Defences demand for personal clothing and equipment; There is no impact on the Equipment Customer Capability Programme in that existing and programmed equipments, vehicles and communication items are whole fleet managed; Initial recruitment costs are based on a total of 2802 enlistments required to generate a throughput of £1,875; Basic and collective training costs(1); Annual barrack running costs estimated at 10 per cent. of cost of new build; Annual salary costs (pay, national insurance and pensions) based on salaries within a rank structure of a light role infantry battalion; No additional cost is assumed for allowances such as operational, separation and education allowances; No other running cost is assumed (e.g. annual recruitment and retention and other costs); No depreciation and cost of capital charges are assumed; Figures quoted are at 2007-08 prices. Based on these assumptions, the following costs were derived: £ million Initial start-up costs (estimated) Cost of new barracks (furnished and equipped to standard, including approximately 400 SLA per battalion) (£150 million x 3) 450 Cost of building additional 225 (x 3) SFA (estimated at £200,000 per SFA) 135 Recruitment costs (given a recruit pass rate of only 61 per cent., a total of 2,802 enlistments are required to generate a throughput of 1,875 (625 personnel per battalion) at a cost of £12,000(2) per enlistment 34 Basic training costs (£29,000 per person) 54 Total 673 Annual costs (estimated) Annual barrack running costs (estimated at 10 per cent. of cost x 3) 45 Collective training costs (£1 million per battalion) 3 Annual salary costs (£19 million x 3) 57 Total 105 Overall total 778 17 Dec 2007 : Column 1034W (1) The battalions will conduct the following collective training (CT): CT levels 1 and 2individual and sub unit training; CT level 3unit level trainingin this context it is assumed that the battalions will conduct exercises Druids Dance and Wessex Warrior. For the purposes of this exercise CT 4/5 training has been excluded (the all arms overseas training exercise in Kenya) on the assumption that there would be no increase in the incident of currently funded exercises; the key cost drivers are ammunition costs. T and S costs have been estimated as have clothing and textile costs based on usage for units in 1 (UK) Division. No account has been taken of longer separation allowance costs for training activities. (2) Costs are calculated on a full cost basis and therefore contain an element of overhead as well as fixed and variable costs.