Defence Estates savings to result in 2,500 job losses

Savings of £1.2 billion have been forecast by the government following the announcement of plans to streamline management of defence estates into a single organisation.

Defence Estates, which currently oversees the management of 240,000 hectares of land, will be replaced by the Defence Infrastructure Organisation (DIO) in April.

The landmark reforms will however result in the loss of 2,500 jobs within the next three years.

The job losses come on the back of last year’s strategic defence review that outlined plans to cut 25,000 Ministry of Defence (MoD) jobs.

Under the new arrangement, the DIO will act as umbrella organisation bringing together over 7,000 staff working on construction, maintenance and disposal of land and buildings owned by the Ministry of Defence (MoD).

Defence Secretary Liam Fox said having “a one-stop shop” to manage defence property would deliver “better strategic management” and save £1.2 billion over a period of four years.

“A single infrastructure organisation will provide effective support to our military personnel and better strategic management of the Defence estate.

“It should also deliver significant savings in running costs, increase opportunities for estate rationalisation and promote private sector growth - ultimately delivering better value for money to the taxpayer while giving the Armed Forces what they need.”

The Defence Reform Unit is delivering the changes as part of their remit to overhaul the MOD and reduce costs.

“It’s the first concrete policy produced by the Lord Levene led unit since their inception six months ago.”