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| Philip Hammond warns defence cuts 'risk capability' | Philip Hammond warns defence cuts 'risk capability' |
| (35 minutes later) | |
| Further big cuts in defence spending will lead to the loss of the UK's armed forces capability, Defence Secretary Philip Hammond has warned. | Further big cuts in defence spending will lead to the loss of the UK's armed forces capability, Defence Secretary Philip Hammond has warned. |
| Things were "extremely taut" after the biggest cuts since 1991, he said ahead of the chancellor's spending review. | Things were "extremely taut" after the biggest cuts since 1991, he said ahead of the chancellor's spending review. |
| He told the BBC he would be "fighting the corner for my budget and defence". | He told the BBC he would be "fighting the corner for my budget and defence". |
| The Ministry of Defence said while budgets for 2015/2016 onwards had yet to be set, it had been promised a 1% annual increase in equipment spending. | The Ministry of Defence said while budgets for 2015/2016 onwards had yet to be set, it had been promised a 1% annual increase in equipment spending. |
| Britain currently spends around £34bn every year on defence. | Britain currently spends around £34bn every year on defence. |
| Speaking to the BBC as he oversaw a Royal Marines training exercise in Norway, Mr Hammond said: "There may be some modest reductions we can make through further efficiencies and we were look for those, but we won't be able to make significant further cuts without eroding military capability." | Speaking to the BBC as he oversaw a Royal Marines training exercise in Norway, Mr Hammond said: "There may be some modest reductions we can make through further efficiencies and we were look for those, but we won't be able to make significant further cuts without eroding military capability." |
| He added: "We have some very challenging targets ahead of us to deliver the outcome of the last spending review and I'm clear that we won't be able to deliver big further savings. | He added: "We have some very challenging targets ahead of us to deliver the outcome of the last spending review and I'm clear that we won't be able to deliver big further savings. |
| "But we need to look broadly across government at how we are going to do that, not just narrowly at a few departments." | "But we need to look broadly across government at how we are going to do that, not just narrowly at a few departments." |
| 'Eroding capability' | 'Eroding capability' |
| Reductions in defence spending for 2013-15 in addition to those in 2010's Strategic Defence and Security Review were outlined in last year's Autumn Statement. | Reductions in defence spending for 2013-15 in addition to those in 2010's Strategic Defence and Security Review were outlined in last year's Autumn Statement. |
| And Downing Street said last month that the military would not be immune from further financial cuts in Chancellor George Osborne's next spending review - which is due to be published before the end of 2013 and will set out government spending plans for the first half of the next parliament. | |
| A report this week from the Royal United Services Institute (Rusi) suggested this could lead to additional reductions of more than £1bn a year in the defence budget from 2015. | A report this week from the Royal United Services Institute (Rusi) suggested this could lead to additional reductions of more than £1bn a year in the defence budget from 2015. |
| However, returning from a trade visit to India in February, Prime Minister David Cameron said he was open to the idea of diverting money from the UK's £10bn aid budget to MoD projects, including peacekeeping and other security-related development. | However, returning from a trade visit to India in February, Prime Minister David Cameron said he was open to the idea of diverting money from the UK's £10bn aid budget to MoD projects, including peacekeeping and other security-related development. |
| It is rare for a senior minister to speak out so publicly about cuts that are still the subject of such tense negotiation. | It is rare for a senior minister to speak out so publicly about cuts that are still the subject of such tense negotiation. |
| But Philip Hammond is clearly trying to draw the battle lines ahead of the chancellor's Spending Review for post 2015. | But Philip Hammond is clearly trying to draw the battle lines ahead of the chancellor's Spending Review for post 2015. |
| George Osborne has to make savings of at least £10bn. | George Osborne has to make savings of at least £10bn. |
| If that were to translate into cuts right across departments - save for those that have been "ring-fenced" - then the Ministry of Defence could lose more than another £1bn from its budget. | If that were to translate into cuts right across departments - save for those that have been "ring-fenced" - then the Ministry of Defence could lose more than another £1bn from its budget. |
| Mr Hammond says while there may be some scope for "modest efficiency savings" he's adamant that he won't be able to make significant cuts without eroding Britain's military capabilities - in other words making more troops redundant and axing more military equipment. | Mr Hammond says while there may be some scope for "modest efficiency savings" he's adamant that he won't be able to make significant cuts without eroding Britain's military capabilities - in other words making more troops redundant and axing more military equipment. |
| The defence secretary thinks the savings should come from other departments, namely the welfare budget. | The defence secretary thinks the savings should come from other departments, namely the welfare budget. |
| That puts him on a collision course with the Conservative's coalition partners. Lib Dem Chief Secretary to the Treasury Danny Alexander, has already publicly stated that he has no plans to make further savings in welfare budget. | That puts him on a collision course with the Conservative's coalition partners. Lib Dem Chief Secretary to the Treasury Danny Alexander, has already publicly stated that he has no plans to make further savings in welfare budget. |
| In a Daily Telegraph interview, Mr Hammond said that a number of Conservative cabinet ministers believed "that we have to look at the welfare budget again... if we are going to get control of public spending on a sustainable basis". | In a Daily Telegraph interview, Mr Hammond said that a number of Conservative cabinet ministers believed "that we have to look at the welfare budget again... if we are going to get control of public spending on a sustainable basis". |
| The BBC's defence correspondent Jonathan Beale said that, because Mr Hammond and other Tory ministers wanted a greater proportion of savings to come from the welfare budget, they were on a collision course with their Lib Dem partners. | The BBC's defence correspondent Jonathan Beale said that, because Mr Hammond and other Tory ministers wanted a greater proportion of savings to come from the welfare budget, they were on a collision course with their Lib Dem partners. |
| Liberal Democrat MP Julian Huppert told BBC News there had to be more efficiency with the way the defence budget was spent. | Liberal Democrat MP Julian Huppert told BBC News there had to be more efficiency with the way the defence budget was spent. |
| He said the defence secretary needed to accept "in times of austerity" that it was important to be "far more efficient" with defence spending. | He said the defence secretary needed to accept "in times of austerity" that it was important to be "far more efficient" with defence spending. |
| Battle lines | Battle lines |
| Our defence correspondent says tense negotiations over the next public spending round are already under way and Mr Hammond was publicly drawing the lines of battle. | Our defence correspondent says tense negotiations over the next public spending round are already under way and Mr Hammond was publicly drawing the lines of battle. |
| Conservative MP Patrick Mercer said Mr Hammond's comments were "a warning shot across Treasury bows and Lib Dem bows". | Conservative MP Patrick Mercer said Mr Hammond's comments were "a warning shot across Treasury bows and Lib Dem bows". |
| He told BBC Radio 5 live it came at "an extremely febrile time" on the back of the Eastleigh by-election, which the Liberal Democrats won while the Conservatives were pushed into third place. | He told BBC Radio 5 live it came at "an extremely febrile time" on the back of the Eastleigh by-election, which the Liberal Democrats won while the Conservatives were pushed into third place. |
| Labour MP Paul Flynn told Radio 5 live Mr Hammond had started "the annual game of horse trading that goes on at every department saying, 'we can't have any cuts here'". | Labour MP Paul Flynn told Radio 5 live Mr Hammond had started "the annual game of horse trading that goes on at every department saying, 'we can't have any cuts here'". |
| "Every department should take these cuts," he said. | "Every department should take these cuts," he said. |
| Referring to a report by the Public Accounts Committee - which revealed the Ministry of Defence had bought £1.5bn worth of equipment between 2009 and 2011 that it had not used - he said it had been "most outrageously wasteful in spending". | Referring to a report by the Public Accounts Committee - which revealed the Ministry of Defence had bought £1.5bn worth of equipment between 2009 and 2011 that it had not used - he said it had been "most outrageously wasteful in spending". |
| In response to Thursday's report, the government pledged "to reverse decades of lax inventory management". | In response to Thursday's report, the government pledged "to reverse decades of lax inventory management". |
| Scottish National Party MSP Bill Kidd said a "simple" solution to save money within the defence budget was not to renew the Trident nuclear weapons programme "which would save £100bn" | Scottish National Party MSP Bill Kidd said a "simple" solution to save money within the defence budget was not to renew the Trident nuclear weapons programme "which would save £100bn" |