Osborne will cut the defence budget by eight per cent. Job cuts will come from civilians, not soldiers, sailors and airmen on the front line, and there will be increased investment in better equipment and in cyber warfare.
The armed forces covenant will continue to be funded permanently, with Osborne finding the money from Libor fines. Intelligence forces will receive a 3.4 per cent budget increase.
Cash freeze for defence resource budget means real cut of 2-3% in 2015-16 & would take cumulative cut to around 10% since 2010.— Stephanie Flanders (@BBCStephanie) June 26, 2013