http://www.guardian.co.uk/uk/2011/jan/1 ... e-1bn-cuts?
That'll be a lot of "second hand Typhoons, one careful owner" for sale...Armed forces face further £1bn in cuts
Ministry of Defence to make extra reductions in addition to those anounced in spending review last year
Monday 10 January 2011 19.23 GMT
Typhoons only three years old may have to be scrapped as it will cost too much to update them.
The armed forces face the immediate prospect of having to make significant cuts – of well over £1bn a year – on top of those announced in October's defence review, it emerged today.
The Ministry of Defence faces a "nightmare" as it tries to cope with the extra shortfall in this year's planning round, a leading defence analyst said.
The "defence review has not done enough", Michael Clarke, director of the Royal United Services Institute, told a conference in London attended by senior military officers.
The annual gap between commitments and available cash for the armed forces over the next few years could amount to as much as £2bn, a situation Clarke described as unsustainable.
This year's planning round would be a "nightmare", he said.
Even with an increase now to bridge the immediate shortfall the military would need more later this decade to meet the objectives laid out in the defence review.
Under the review the current £38bn annual defence budget will be cut by about 7.5% over the next four years.
However, the review also laid out plans for a reduced role for the armed forces by 2020.
But even that would require a real terms increase in the defence budget in the years following 2015, military chiefs have insisted.
It has also emerged that the RAF is to scrap more than 50 Eurofighter/Typhoon jets which became operational only three years ago at a cost of more than £4.5bn because it cannot afford to update them.
An MoD spokeswoman said it did not recognise the figures on the immediate defence budget shortfall.
However, they were not challenged by senior military personnel present at the conference.
Nick Harvey, the Lib Dem armed forces minister, told the conference Labour had allowed a "massive unfunded liability in defence to build up".