Question to the Ministry of Defence:

To ask the Secretary of State for Defence, with reference to his Department's press release entitled Capability boost for UK's global military operations as contract confirmed for new Chinooks, published on 14 March 2024, what assessment he has made of the potential impact of the foreign exchange rate on the value of the contract for new Chinook helicopters.

The Foreign Military Sales agreement with the US Government is denominated in US dollars in common with all such cases. The forecasted cost of the programme is based on the most up to date exchange rate predictions from Defence Economics. The risk of future foreign exchange exposure will be mitigated by the Department’s use of forward purchasing arrangements.