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Spending Review: David Cameron 'intervenes on defence' | Spending Review: David Cameron 'intervenes on defence' |
(40 minutes later) | |
The budget for the Ministry of Defence has been finalised after a personal intervention by Prime Minister David Cameron, the BBC has learned. | The budget for the Ministry of Defence has been finalised after a personal intervention by Prime Minister David Cameron, the BBC has learned. |
Defence correspondent Caroline Wyatt said the MoD expected a 7% budget cut, but the Treasury raised this to 10%. | Defence correspondent Caroline Wyatt said the MoD expected a 7% budget cut, but the Treasury raised this to 10%. |
However, the final figure is thought to be below 10% following Mr Cameron's intervention, our correspondent added. | However, the final figure is thought to be below 10% following Mr Cameron's intervention, our correspondent added. |
BBC political correspondent Tim Reid said Liam Fox "seems to have won this particular battle with the Treasury". | |
The defence secretary seemed to have got cuts of between seven and eight per cent, our correspondent added. | |
He said that Hillary Clinton's comments this week, in which she expressed concern about the expected deep defence cuts, could have added to the pressure on the coalition. | |
Details of spending cuts are due to be published next week. | Details of spending cuts are due to be published next week. |
A senior Downing St source told the BBC the review would not see any substantial cuts made to the number of Army personnel. | |
The source said it would also see £750m saved over four years on Trident, although was not clear how those savings would be made. | The source said it would also see £750m saved over four years on Trident, although was not clear how those savings would be made. |
Mr Cameron had the "highest respect" for his defence chiefs, and had an "excellent relationship" with Defence Secretary Liam Fox, the source added. | Mr Cameron had the "highest respect" for his defence chiefs, and had an "excellent relationship" with Defence Secretary Liam Fox, the source added. |
After what some defence sources have called a "bloody night", it has emerged that the MoD budget was finalised after the prime minister personally intervened, insisting the armed forces must have enough money to do their job. | After what some defence sources have called a "bloody night", it has emerged that the MoD budget was finalised after the prime minister personally intervened, insisting the armed forces must have enough money to do their job. |
David Cameron ultimately came down on the side of the Defence Secretary Liam Fox, who has fought a tough battle against the Treasury's desire for cuts of at least 10%. | David Cameron ultimately came down on the side of the Defence Secretary Liam Fox, who has fought a tough battle against the Treasury's desire for cuts of at least 10%. |
It is believed the final settlement puts the cuts to the MoD's £37bn a year budget somewhere in the region of 8%, although with the "black hole" in the defence budget inherited from the Labour government, that could equate to rather higher real cuts. | It is believed the final settlement puts the cuts to the MoD's £37bn a year budget somewhere in the region of 8%, although with the "black hole" in the defence budget inherited from the Labour government, that could equate to rather higher real cuts. |
'Can live with' | 'Can live with' |
There has been intense debate inside government about where the cuts should fall within the defence budget. | There has been intense debate inside government about where the cuts should fall within the defence budget. |
Initial demands by the Treasury were for reductions of between 10% and 20%, with many options put before the National Security Council. | Initial demands by the Treasury were for reductions of between 10% and 20%, with many options put before the National Security Council. |
Earlier this week it was believed at the MoD that a settlement was close at about 7%, but the Treasury came back demanding cuts of 10%. | Earlier this week it was believed at the MoD that a settlement was close at about 7%, but the Treasury came back demanding cuts of 10%. |
Military chiefs said that would damage the front line in Afghanistan, something Mr Cameron had previously made clear he was not prepared to do. | Military chiefs said that would damage the front line in Afghanistan, something Mr Cameron had previously made clear he was not prepared to do. |
Caroline Wyatt says that although the exact settlement figure has not been revealed, it is something the defence secretary "can live with". | Caroline Wyatt says that although the exact settlement figure has not been revealed, it is something the defence secretary "can live with". |
The BBC understands that both planned aircraft carriers, HMS Queen Elizabeth and HMS Prince of Wales, will be built - but the Royal Navy stands to lose a significant portion of its surface fleet, while the order for the joint strike fighters for the carriers will be scaled down substantially. | The BBC understands that both planned aircraft carriers, HMS Queen Elizabeth and HMS Prince of Wales, will be built - but the Royal Navy stands to lose a significant portion of its surface fleet, while the order for the joint strike fighters for the carriers will be scaled down substantially. |
The carriers are being constructed in sections in Scotland, Portsmouth and north Devon. | The carriers are being constructed in sections in Scotland, Portsmouth and north Devon. |
It is believed that the Joint RAF/Fleet Air Arm Harrier force may face the axe, while some squadrons of RAF Tornado jets could be saved instead - although some air force bases will close. | It is believed that the Joint RAF/Fleet Air Arm Harrier force may face the axe, while some squadrons of RAF Tornado jets could be saved instead - although some air force bases will close. |
The Army may have to cut up to 7,000 or so personnel over the next five years, while the MoD itself could face substantial cuts to its civilian staff. | The Army may have to cut up to 7,000 or so personnel over the next five years, while the MoD itself could face substantial cuts to its civilian staff. |
Sources say £750m will be saved over four years on the Trident nuclear deterrent missile system but it is not yet clear how those savings will be made. | Sources say £750m will be saved over four years on the Trident nuclear deterrent missile system but it is not yet clear how those savings will be made. |