Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what savings to the public purse will arise from annual pay restraint and workforce reductions in the armed forces in (a) 2014-15 and (b) 2015-16.
Savings as a result of the restructuring of the Armed Forces agreed at the 2010 Strategic Defence and Security Review are forecast to be £1.3bn in 2014-15 and £1.4bn in 2015-16.
Savings as a result of the Government’s pay restraint policy are forecast to be £600m in 2014-15 and £700m in 2015-16. These savings are compared against a counterfactual annual pay award of 2%.