Defence Estates scrapped by reform unit to form the Defence Infrastructure Organisation

The creation of a new organisation to manage Defence property has been announced today.

Defence Estates is to be absorbed into a new body which will manage defence property, saving the Ministry of Defence an estimated £1.2bn by 2015.

Around 2,500 jobs are to go by 2014 as a result of the creation of the Defence Infrastructure Organisation (DIO).

The move accounts for around 10 per cent of the 25,000 civilian jobs to be cut by 2015.

The DIO will take on the responsibilities of Defence Estates, which currently spends some £2bn each year, managing around 240,000 hectares of land and property on behalf of the MOD.

Estate rationalisation,  efficiency measures and job losses appear to be the way forward. 

The private sector must be rubbing their hands together.