The 2010 budget has confirmed that the UK Ministry of Defence (MoD) will deliver £700m ($1.04bn) of efficiency savings through the 2009 pre-budget report commitment.

The new budget has also confirmed a commitment to further real-term increases in the defence budget in 2010/11.

Of the cuts, £550m will be saved across the department, including up to £120m from greater use of collaborative procurement on construction, food and IT, and better management of the defence estate.

Savings through greater efficiency in equipment support, and further prioritisation in the Strategic Defence Review are also areas of budgetary commitment.

The replacement of legacy IT system is also expected to result in £130m of savings.

An additional £30m is expected to be to be saved by further reducing the use of external consultants and expenditure on marketing and communications, including significantly reducing the number of MoD publications.

The MoD has already cut consultancy spending by 75% since 2002.