The Ministry of Defence’s budget will be cut to £33.5bn a year in 2104–15, but will rise slightly in 2011. Day-to-day and capital spending will be cut by a cumulative 7.5 per cent in real terms.
The recommendations of the Trident value for money review are expected to reduce spending by £750m over five years, and some £3.2bn over the next 10 years.
The ministry will also make a 25 per cent cut in civilian and military non-frontline organisations by 2015.
The Pentagon’s press secretary Geoff Morrell said in a statement yesterday: “We are confident that the UK will continue to have the capacity to provide top-tier fighting forces in Afghanistan and other future missions in defence of our shared interests and security.”