Wearing Uniform in London

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Letter from PUS and CDS to all staff:

DEPARTMENTAL FINANCIAL POSITION

You will be aware that the Department is facing extremely tough financial times.
There are a number of reasons why the position this year is worse than before -we have recruited more Service personnel than in previous years, and secured Service pay rises above the rate of inflation, a weak sterling exchange rate has a big effect on our budget, we have sold less of our estate in a depressed property market, there has been continued cost growth on some equipment projects. All of this has to be paid for.
The scale of the challenge is such that it cannot be dealt with routinely -either through our regular Planning Rounds or usual in-year financial management action. As a result, the Defence Board and leaders across the Department have had to take a series of tough decisions aimed at bringing our in-year finances back into balance. Many of you will have already felt the impact of some of these.
We have not taken these decisions lightly. In all cases we have aimed to ensure that savings made do not impact on operations in Afghanistan. And we have taken the advice of budget holders to ensure that the measures we take are the least painful of those available both in terms of their outputs and the overall objectives of defence.
But despite the actions taken so far, we are not yet in a position to balance the books for the rest of the year. The Defence Board has decided that it is necessary to take a further package of pan-Defence savings, which have since been endorsed by the Secretary of State.
We need to dig deeper in order to produce greater savings. And we need to apply controls more consistently in the interests of fairness as some areas are currently doing more than others. We are therefore introducing with immediate effect the restrictions on travel, external recruitment and overtime set out in the attachment to this letter, which will apply across the Department to Service and Civilian personnel at all ranks and grades. We have informally consulted the national Trades Unions about them.
We recognise that some of these restrictions might make it harder for you to do your job, and also that some of these measures cut across entitlements. But if we overspend our budget this year, it will make next year even more difficult. The wider economic situation means that we will remain in a difficult financial position for some time to come, and we need to plan for that.
We need to focus our work and resources in line with the direction set out in the Strategy for Defence, and above all on success in Afghanistan, which is the main effort for Defence. Taking these steps, unwelcome though they might be, will help us to do so.
The Defence Board will continue to monitor closely the in-year financial position and review the effect of all saving measures implemented, as well as the prospects for the next financial year. We will keep you informed.
PUS CDS