THE Government is to announce massive cuts in defence spending in the wake of the global economic crisis, insiders revealed today.
Sources claim that a severe round of cuts on major programmes is expected within months as it tries to plug a £1.5billion shortfall in the defence budget. The revelation comes ahead of a major two-day conference on defence procurement at the Queen Elizabeth Conference Centre, in Westminster, starting today.
John Hutton, the new Defence Secretary, has been told he must adopt a more realistic budget and warned he cannot put off a major defence and security review until after the next election. "The budget is bust, and the cupboard bare," said Professor Gwyn Prins, a strategic analyst at the LSE. "Something has to give."
Experts warn the purchases most at risk surround two 65,000-tonne aircraft carriers, the Prince of Wales and Queen Elizabeth II, costing around £4 billion, which are due to be completed by 2014 and 2016. Funding for the carriers is secure but Britain is considering pulling out of a £9 billion project with America to produce new fighter planes, which will fly off the carriers.
Britain has ordered 150 of the Lockheed Martin F-35 joint strike fighter planes but experts warn that long delays on the project and soaring costs could scupper the deal.