The Ministry of Defence (MoD) has been accused of wasting taxpayer money after spending over £2 million on taxis and chauffeurs in the 2023/24 financial year, despite facing severe budget constraints and historic reductions to the British Army.
Figures obtained by MailOnline reveal the MoD allocated £2,095,730.19 to transport military personnel and civil servants, a decision that campaigners and defence experts have described as a “pointless waste” of resources.
This spending comes as the MoD attempts to address a £29 billion funding shortfall in defence spending. Meanwhile, the British Army is on course to shrink to its smallest size since 1793, with troop numbers projected to fall below 70,000 for the first time in 230 years.
Critics point out that the amount spent on taxis could have paid the annual salaries of 83 Army Privates, each earning £25,200.
Outrage Over MoD Expenditure
Colonel Philip Ingram, a former British intelligence officer, slammed the spending, saying, “Virtually all activities across defence are not delivered in a cost-effective way, wasting taxpayers’ money as there is zero accountability for wasteful practices. This must be addressed.”
Colonel Ingram warned that cutting the size of the British Army sends a dangerous message to allies and adversaries alike during a time of escalating global tensions. “We are in a 1938 moment; it isn’t peaceful in our time. We need to be growing our military capability rapidly,” he said, likening the current climate to the prelude to World War II.
William Yarwood of the TaxPayers’ Alliance echoed these concerns, describing the spending as wasteful and avoidable. “Taxpayers will be driven round the bend by this pointless waste,” he said. “While the MoD complains about funding gaps, it is crucial that they make every penny count. Instead of hitching a ride, MoD bosses should declare a war on waste.”
Rising Costs and Defence Challenges
The spending forms part of the MoD’s Phoenix II vehicle contract, which includes taxi and chauffeur services for military personnel and civil servants. In its response to the FoI request, the MoD explained that travel is often necessary for staff to reach locations not accessible by public transport.
Some chauffeurs employed under the contract are ex-military personnel providing transport for high-ranking officials and ministers. The MoD clarified that all travel bookings must be authorised as essential and represent value for money.
However, this is not the first time the MoD has faced criticism for transport-related expenses. In 2022, it spent £16.6 million on hire cars, an increase from £12.9 million in 2021.
Political Reactions
Tory shadow Armed Forces Minister Mark Francois expressed frustration over the spending, pointing out that “every pound the MoD spends really matters.” He added, “A pound spent on taxi fares is a pound we cannot spend on ammunition or other key requirements.”
The criticism comes as Labour warns of the British Army’s declining size. The party predicts troop numbers could drop below 70,000 a level not seen in over two centuries.
MoD’s Response
An MoD spokesperson defended the expenditure, stating, “As a large organisation with remote sites across the UK and bases around the world, our staff need to travel to locations that are not always accessible by public transport.”
The spokesperson emphasised the Government’s commitment to “securing value for money for taxpayers, cracking down on waste, and getting a grip on MoD budgets.” Measures such as halting non-essential consultancy spending for 2024/25 have been introduced to improve fiscal oversight.
Defence Spending Under Scrutiny
As the MoD faces mounting pressure to balance its budget, critics argue that its transport spending is emblematic of deeper inefficiencies. With the Army’s size shrinking and international tensions rising, calls for greater accountability and resource allocation within the MoD continue to grow.
At a time when every pound matters, the debate over how best to use limited defence funds highlights the challenges of maintaining military readiness amid financial strain.
