The Next Excuse for Cuts

The Next Defense Crunch in Britain, Contentions, January 8, 2010. "Contracting out in defense is an important public and political issue in both the United States and Britain. When based on the proper principles, contracting out allows the government to draw on private-sector skills and resources to deliver services more efficiently. But in Britain, Labour’s sketchy accounting methods for the cost of these contracts has created another snare for Britain’s defenses. These contracts, of course, commit the government to future costs. But because Labour has played accounting games that put these contracts on the department books but not the national ones, Britain’s total future obligations will be larger than those shown on the country’s overall accounts."