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13.1  |  Resources
499.  The official advised that the UOR regime was not ideal for the UK military
either, as:
Despite accelerated procurement, UORs were frequently not available until
several months after a need had been identified. It would be better to plan
to have the capability in advance.
That would also enable soldiers to be trained on new equipment before their
deployment to theatre, and for new equipment to be properly incorporated into
military doctrine.
After one year, the ongoing costs of UORs reverted to the core defence budget.
Those unplanned costs could be difficult to accommodate.
500.  The official recommended that Mr Timms agree a £200m increase in the combined
UOR envelope, and signal a need for a new UOR regime to be negotiated within the
forthcoming Comprehensive Spending Review.
501.  Mr Timms replied to Mr Browne on 9 May:
“We discussed that the UOR regime has drifted from its original intentions.
We agreed we need a different arrangement for the funding for UORs in the
future … I propose we seek to develop this as part of our discussions around the
CSR [Comprehensive Spending Review].”301
502.  As an “interim solution”, Mr Timms agreed to increase the UOR ceiling by
£200m. For expenditure above that ceiling, and (in line with existing arrangements)
for all individual UORs above £10m, the MOD should seek Treasury approval on a
case‑by‑case basis.
503.  The MOD and Treasury have told the Inquiry that they have no record of that
discussion between Mr Timms and Mr Browne.302
504.  From June 2007, the Treasury cleared every UOR individually (rather than only
those above £10m).303
505.  The outline of a new UOR regime was agreed in late July, as part of the MOD’s
settlement in the 2007 Comprehensive Spending Review:
The Reserve would pay for the “first element” of total UOR costs each year.
301 Letter Timms to Browne, 9 May 2007, ‘Urgent Operational Requirements (UOR) in Iraq and
Afghanistan’.
302 Email MOD [junior official] to Iraq Inquiry [junior official], 25 September 2013, ‘Iraq Inquiry: Queries
Relating to Resourcing – MOD Response’; Email Treasury [junior official] to Iraq Inquiry [junior official],
17 April 2014, ‘Further Queries Relating to Resources’.
303 Minute Lester to Woolley, 30 October 2007, ‘Approach to UOR Funding Following the
CSR07 Settlement’.
527
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