UK Military Hit by Budget Crisis

The Treasury has refused to provide additional funds to replace Britain's fleet of aging Trident submarines. This decision will inevitably lead to dramatic reductions in other defence spending.

In a break with historical precedent, George Osborne, the Chancellor, has ruled that the entire cost of the new system must be found from within the day-to-day defence budget.

The ruling has caused disarray within the Ministry of Defence where officials are already struggling to find cost savings of 20 per cent – or £7 billion – from next year's budget.

Major capabilities such as Britain's two new aircraft carriers may now be axed or delayed, the number of Joint Strike Fighter aircraft is set to be halved and a raft of RAF, Army and Naval bases will be closed in addition to other cuts, to fund the Trident replacement programme.

The Sunday Telegraph has learned that Liam Fox, the defence secretary, had assumed that the huge cost of replacing Britain's four ageing Trident submarines would be met by the Government because the nuclear deterrent is a "political" and not a "war fighting weapon".

One senior defence official said: "It's a stitch-up. There was absolutely no hint of this during the election. The armed forces have been knifed in the back by the Treasury.

"This has come out of the blue, almost like an afterthought. The impact on defence will be huge."

By: Shelldrake