Tuesday, May 11, 1999 Published at 11:21 GMT 12:21 UK
Kosovo 'no threat' to Treasury
The total cost of military operations in Kosovo is £37m
The cost of the continuing conflict in Kosovo poses "no threat to public finances", MPs have heard.
Mr Milburn said the action would not put the government's fiscal rules in jeopardy.
"The costs to date are perfectly consistent with our public spending plans," he said.
"And indeed on any likely military scenario for the future, the costs of operations in Kosovo do pose no threat to the public finance."
Mr Milburn said the bill for humanitarian aid in Kosovo and surrounding areas now amounted to £40bn.
The cost of military operations stood at £37m to the end of April, excluding replacement munitions.
The figure for the cost of new weapons would depend on how long the conflict continued, Mr Milburn said.
Labour MP Jacqui Smith asked whether the humanitarian aid included the costs to local authorities in the UK accommodating refugees.
Those costs would be met by central government, the minister said.
He said it was "virtually impossible" to say what the total cost of the conflict would be for the UK, but no plans existed to increase taxes.
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