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The Report of the Iraq Inquiry
156.  In his autobiography, Gen Dannatt described the Operational Allowance as the
product of “some journalistic pressure and keen discussions with the Treasury”.101
He also described it as the beginning of his campaign to “improve the soldiers’ lot”.
157.  Mr Browne announced the introduction of the Operational Allowance on
10 October.102
158.  Mr Browne raised the issue of Council Tax charges for deployed Service Personnel
with Ms Ruth Kelly, the Secretary of State for Communities and Local Government, on
19 October.103 MOD and DCLG officials subsequently met to explore options for abating
Council Tax charges. The MOD’s preferred option was a statutory discount of 25 percent
(which would equate to a discount of £132 based on the average Council Tax bill).
159.  Mr Browne announced in September 2007 that Service Personnel serving in
Iraq and Afghanistan would receive a £140 rebate on their Council Tax bill (based
on a six‑month tour).104
Reports on recruitment and retention
160.  The NAO published a report entitled Recruitment and Retention in the Armed
Forces in November 2006.105 The report stated that, at July 2006, the trained strength
of the Armed Forces stood at around 180,690 Service Personnel, a shortfall of some
5,170 (2.8 percent) against the MOD’s estimated requirement.
161.  This figure masked significant shortages in 88 “pinch point” trades, where there
was insufficient trained strength to perform operational tasks while enabling the
Harmony Guidelines to be met. While 14.5 percent of the trained strength of the Army
had exceeded the Harmony Guidelines at some point in the previous 30 months, this
percentage rose to more than 33 percent for some pinch point trades.
162.  The NAO concluded:
Although the Armed Forces had consistently operated at or above the most
demanding combination of operations envisaged by the Defence Planning
Assumptions (DPAs) since 2001, and the MOD expected that this would
continue to be the case for some time, the Armed Forces’ manning requirements
had not been adjusted to reflect the current levels of activity. The NAO reported
that, while the MOD accepted that operating at that level could result in it placing
additional strains on its people, the DPAs were guidelines only and were not
intended to constrain decisions taken on the employment of the Armed Forces.
101  Dannatt, R. Leading from the Front. Bantam Press, 2010.
102  BBC, 10 October 2006, Soldiers to get ‘tax bill’ bonus.
103  Minute Baker to PS/SoS [MOD], 8 December 2006, ‘An Improved Package for Service Personnel
on Operations – Council Tax Discounts/Rebates’.
104  The Guardian, 26 September 2007, Council tax rebates for war zone soldiers.
105  National Audit Office, Recruitment and Retention in the Armed Forces, November 2006.
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