Ministers agree MoD budget cuts

The government will be announcing its defence review next week

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%.

However, the final figure is thought to be below 10% following Mr Cameron’s intervention, our correspondent added.

Mr Cameron felt defence chiefs should have “enough money to do their job”, BBC reporter Adam Fleming said.

Details of spending cuts are due to be published next week.

According to BBC politics reporter Adam Fleming, a senior Number 10 source claimed 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.

Mr Cameron had the “highest respect” for his defence chiefs, and had an “excellent relationship” with Defence Secretary Liam Fox, the source added.

There has been intense debate inside government about where the cuts should fall within the defence budget.

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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%.

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”.

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