9:13am UK, Monday July 18, 2011
The Defence Secretary is expected to announce a major reduction in the size of the Army - shrinking the regular force to its smallest size in 110 years.
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Liam Fox will tell MPs that numbers will drop by 19,000 to 82,000 as the military increases its reliance on the reserves.
But following "protracted" discussions with the Treasury, the beleaguered department has secured a rise in the defence equipment budget of 1% year-on-year from 2015 to 2020.
Sources say this will ensure big spending projects will continue to completion, such as the new aircraft carrier and the Joint Strike Fighters it will carry.
It will also put the Ministry of Defence's budget on an even keel for the first time in living memory.
Dr Fox will announce in the Commons that an additional £5bn of uncosted spending has been found in the MoD's budget - on top of the £38bn black hole already identified.
He believes the MoD's finances will be balanced by the end of the decade, bringing to an end years of overspending and financial mismanagement.
Defence Secretary Liam FoxIn Britain, we have a much bigger ratio of regulars to reserves than other countries and we've seen our reserves, sadly, rundown and neglected in recent years.
But critics will doubtless focus on the size of the cuts to the regular Army and suggest again that strategic decisions are being taken for fiscal reasons.
The Defence Secretary told Sky News the changes are designed to bring the ratio of regular to reserve forces in line with that of international allies.
The United States has 35% of its force strength from reservists, as does Canada.
"In Britain, we have a much bigger ratio of regulars to reserves than other countries and we've seen our reserves, sadly, rundown and neglected in recent years and I want to see that trend reversed," Dr Fox said.
"When we look at countries like the United States and Canada and Australia, where the ratio is very different, I think we should be closer to that kind of position.
"However, if we're going to do that we have to put substantial amounts of resources into the reserves.
Mr Fox has been warned against drawing down troops from Afghanistan
"That's money for training, money for equipment and potential re-rolling of the reserves to give them more specifically-defined responsibilities.
"That again would be closer to the experience in other countries and something I want to see."
The changes will mean around 30% of Britain's strength will come from irregular forces.
Additional funding for the reserves is also expected to be announced.
"We're pleased to have come to an agreement with Number 10 to fill the gap", said one senior defence source.
"Following protracted, lengthy discussions with the Treasury we will see the departmental black hole wiped out by 2020.
"This is the first time in the modern age the books will have been balanced."
Mr Fox also said on Sunday it was "offensive" to refer to reserve soldiers as "Dad's Army", insisting they had played a vital role in Afghanistan.
Article Source KBG Test Blog (http://rc.kbg.me)
