The credit crunch and the effects on the British Military

Discussion in 'Current Affairs, News and Analysis' started by bitterandtwisted, Sep 16, 2008.

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  1. Hi gents and ladies.

    Just had a few sasperella’s in the mess and my mind was going overtime about the on the credit crunch and what long term effects its likely to have on the British military.

    I don’t know why but, I like to have a healthy discussion relax over the bigger scheme of things in life, and mainly what effects us as soldiers in the in the state of current climate of the Brit economy.

    I know that we as soldiers when deployed overseas get a FFR rate to compensate for the cost of the value decreasing of the GB Pound and the LOA goes up. But..........


    But are there any clever cats out there to explain to me - in laymen’s terms what other effects - will it affect us in the future long and short term on the future budget of the military, ie pay allowances equipment, welfare spending etc. Please keep it simple.


    I have the Motley fool book which is good advice and moneysaving expert website.

    Advice on

    I.e Lending/borrowing - investing - where to invest/borrowing advice in the current climate.

    I know there are switched on cookies out there.

    I’m SPS but there is a stigmata that we are civilian financial gurus - the old ask the clerk he will know everything...


    I would be grateful what to avoid in the current climate - I.e. American mortgage brokers in the current shiote etc or possible arrser whom have had personal bad experiences they wish to share on poo traps to avoid.

    Thanks for your help guys.
  2. As someone who tracks around the financial and economic bits of the web, who has "form" on predicting the latest mess and who has a books on the shelf about the financial crashes of the past, all I can say is that all bets are off. One way or another we are all going to suffer, and there is little that won't be touched. Do not expect any sense from the politicians, they know less than you do because they are so much further from reality. As for the experts, they can only make guess's, because there is too much happening at the same time and too many unknowns. For every 1000 experts, there will be a few who will be right. The trouble is nobody knows which ones, and they do not know themselves. Just keep your money close and your finances as simple as possible and hope you ride it out.
  3. Old Rat has accurately described what I would have said about the situation. The main thing is that the Government is going to have to spend less money - like all of us. Anyone paid by the Government is not going to get a big pay rise. Easy targets will be hit hardest, that could mean, sorry, will mean military spending. I'm interested to see how long the aircraft carriers last.
  4. Credit Crunch, Effects on the Forces...?

    Fantastic excuse for the AFPB, MoD and everyother Line Toe'r to say that their should be no pay rise come April 09.

    But Accommodation will go up, as will the price od Scran under Pay-as-yer-Starve. But funnily enough, MMA & GYP won't shift..

  5. All of the above is true, but if you are talking about established equipment programs, not much will change as contracts have been signed. It must also be born in mind that the government of the UK like most of those in the west have a AAA credit rating, so we are unlikely to see the kind of emergency osterity measures that would come if the money simply ran out. As for the plug being pulled on the carriers, forget it.
  6. msr

    msr LE

  7. Maybe so, but it all depends on which foreign country the contract is with and how the pound is fairing against that currency. Any contract due payment within the EU will be costing some 20% more, and that's a huge amount when you're talking in multiples of millions. And all that extra money has to come from a pretty much fixed annual defence budget.
  8. That's odd - with the tanker PPP contract the thing had to be fully funded before being given the go-ahead.

  9. That deal is in trouble because it's costing more than originally expected, and at £11 billion with a total saving over 10 years of £250 million a rise of £1 billion meant that it would actually cost us £75 million a year more to run a reduced service and of course cause huge upheavel. Now i know in the past the government have just gone ahead with PFI projects that cost a lot more than the old way of doing it, but in this current climate they're even starting to worry about it, especially with it going onto the balance sheet now and that new figure of £12 billion being a present total, not what it will cost at the time (as that'll go up).

    As for the government at present, well they need to cut back in certain areas, there will be less money coming in due to a drop in taxes from business, house selling, etc. This shortfal will have to either be made up or removed from the overall spending money. With an election on the horizon and also more press on wasted money i would hope that the government would cut back on where the money is wasted, i.e. spending huge amounts of projects of little benefit, helping big business and quangos.

    It is interesting to note that a lot of people go on about benefit fraud, but by government estimates this costs us around £500 million a year or something like that, whereas big businesses who avoid paying the proper level of tax costs this country over £50 billion a year, that's more than the entire military budget lost, every year!
  10. Also note that QINETIQ are one of the companies behind this deal, along with the governments favourites like EDS, we just sold our shares in QINETIQ, a company that is worth billions, yet we sold it off for pennies, another dodgy deal that cost this country a lot of money.
  11. Can the 'effect' on the 'military', and everyone else in the country, of this disgraced and dishonest government get worse than it is?

    Look, if you will, at the 'Inflation' figures released today.

    The 'Annual Rate of Inflation' is published as being: 4.7%.

    The 'Retail Prices Inflation Rate' is reputed to be: 4.8%.

    I wonder where the statisticians who produce these figures shop, and buy petrol, and pay their water rates, and pay their gas bills, and pay their electricity bills?

    The 'increase' for military pensions is calculated by one of these 'rates'. I don't know which and I don't know when in the 'Fiscal Year'.

    I wonder if these 'rates' will be used. If they are, then I will bet that the 'rate of inflation' in April 2009, when the 'increases' are paid will be in double figures.

    Is there anyone out there, excepting dear old 'Sven', who thinks this is a 'good and just' government?
  12. I have NEVER heard this one... is it a new joke? Or can anyone ever remember, anyone regarding the clerks as a guru on anything other than sitting on their bums avoiding duties?
  13. Stigma:
    I know the term clerk originates from cleric but clerks with stigmata. Must be a miracle.
  14. When I look at the staggering damage done to our economies by clueless politicians and their greedy cronies, I cannot help but think: Osama must weep with envy at destruction he could barely imagine.

    So I wonder if this means the US and UK governments will declare a War on Corruption, or a War on Naked Greed, to go with the other spectacular failures like the Wars on Drugs, Terror, Hoodies, Single Mothers ...?

    Smartarrsing aside, I wouldn't be too surprised if one of the ultimate effects on this catastrophe does indeed affect the British military: a real war. A big one.