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13.1  |  Resources
Introduction
1.  This Section addresses:
the cost of the UK’s involvement in Iraq;
the main sources of funding for the UK’s involvement, the different arrangements
for funding military operations and civilian activities, and how those
arrangements changed;
the estimates of the cost of military operations and civilian activities that were
made before the invasion, and the extent to which those estimates influenced
key decisions;
the imposition of controls over the MOD’s management of its resources by the
Treasury in September 2003;
the allocations for civilian activities that were made before, during and after the
conflict; and
how expenditure was scrutinised.
2.  This Section does not address how departments used the resources available to
them. Specifically:
The provision of military equipment is considered in Sections 6.3 and 14.
The UK’s support for reconstruction is considered in Section 10.
The UK’s support for Security Sector Reform is considered in Section 12.
The cost of the UK’s intervention in Iraq
3.  The direct cost to the UK Government of its intervention in Iraq between the UK
financial years 2002/03 and 2009/10 was at least £9.2bn in cash terms1 (£11.83bn in
2016 prices).2 That comprised:
Category
Military operations
Humanitarian and development assistance3
Diplomatic representation4
Inter‑departmental Pools and peacekeeping
Total
£bn
8.20
0.58
0.30
0.16
9.24
Percentage
89
6
3
2
100
1 The Government has confirmed that the expenditure figures for DFID and the FCO that were provided by
Sir Nicholas Macpherson, Director General in charge of Public Expenditure from 2001 to 2005 and then
Permanent Secretary at the Treasury, in his statement to the Inquiry of 15 January 2010, were inaccurate.
That statement was published by the Inquiry on 22 January 2010.
2 2016 price equivalent calculated using Consumer Price Inflation Time Series Dataset December 2015,
Office for National Statistics.
3  Includes the imputed share of UK contributions to multilateral organisations.
4  Includes support provided by the FCO to UK secondees to the Coalition Provisional Authority (CPA).
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