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| Philip Hammond: more defence cuts could undermine UK military capability | Philip Hammond: more defence cuts could undermine UK military capability |
| (4 months later) | |
| Philip Hammond, the defence secretary, has warned that any attempt by the Treasury to push military savings too far could undermine Britain's military capability. | Philip Hammond, the defence secretary, has warned that any attempt by the Treasury to push military savings too far could undermine Britain's military capability. |
| In an interview on the Today programme on Wednesday, he denied suggestions that he was refusing to implement cuts, but also insisted that any budget cuts that went beyond "efficiency savings" would be damaging. | In an interview on the Today programme on Wednesday, he denied suggestions that he was refusing to implement cuts, but also insisted that any budget cuts that went beyond "efficiency savings" would be damaging. |
| He spoke after the Treasury confirmed that it was reconstituting the "star chamber" that means any ministers who refuse to agree budget reductions with the chancellor, George Osborne, can be summoned for an interrogation by their cabinet colleagues. | He spoke after the Treasury confirmed that it was reconstituting the "star chamber" that means any ministers who refuse to agree budget reductions with the chancellor, George Osborne, can be summoned for an interrogation by their cabinet colleagues. |
| Osborne wants to find cuts worth £11.5bn by the time he announces his spending review for 2015-16 on 26 June. Seven departments have already settled with the Treasury, but Osborne still needs to find £9bn and, with several departments enjoying ringfenced budgets, the Ministry of Defence is one of Osborne's prime targets for savings. | Osborne wants to find cuts worth £11.5bn by the time he announces his spending review for 2015-16 on 26 June. Seven departments have already settled with the Treasury, but Osborne still needs to find £9bn and, with several departments enjoying ringfenced budgets, the Ministry of Defence is one of Osborne's prime targets for savings. |
| Downing Street has said it will protect the budget for military equipment in 2015-16, but not the money set aside for military spending overall. This year, total defence spending is worth about £40bn. | Downing Street has said it will protect the budget for military equipment in 2015-16, but not the money set aside for military spending overall. This year, total defence spending is worth about £40bn. |
| Hammond said on the Today programme on BBC Radio 4 that he was not resisting cuts: "I'm not a hold-out." Instead, he said, he was participating in a review of defence spending ordered by the prime minister. | Hammond said on the Today programme on BBC Radio 4 that he was not resisting cuts: "I'm not a hold-out." Instead, he said, he was participating in a review of defence spending ordered by the prime minister. |
| Sir Jeremy Heywood, the cabinet secretary, is leading a joint review involving the MoD, the Treasury and the Cabinet Office, looking at further savings "on top of the very aggressive efficiency plan that we've already got in place", Hammond said. | Sir Jeremy Heywood, the cabinet secretary, is leading a joint review involving the MoD, the Treasury and the Cabinet Office, looking at further savings "on top of the very aggressive efficiency plan that we've already got in place", Hammond said. |
| The review was looking at savings that could be made "without affecting frontline military capability". Hammond said this review would conclude within the next two weeks. | The review was looking at savings that could be made "without affecting frontline military capability". Hammond said this review would conclude within the next two weeks. |
| "Then I expect to sit down with the chancellor and the chief secretary and have an adult conversation about how we go forward on the basis of that independently chaired review of what we reasonably can do." | "Then I expect to sit down with the chancellor and the chief secretary and have an adult conversation about how we go forward on the basis of that independently chaired review of what we reasonably can do." |
| But Hammond said there was a distinction between "efficiency savings" and deeper cuts, and implied he would strongly resist the latter. | But Hammond said there was a distinction between "efficiency savings" and deeper cuts, and implied he would strongly resist the latter. |
| "We can look for efficiency savings, which everybody should be seeking all the time, and however many times you have done it you can always go back and have another look," he said. | "We can look for efficiency savings, which everybody should be seeking all the time, and however many times you have done it you can always go back and have another look," he said. |
| "If we need to go beyond what are efficiency savings, then of course we will have to have a discussion across government about how and where we would take out additional capability. | "If we need to go beyond what are efficiency savings, then of course we will have to have a discussion across government about how and where we would take out additional capability. |
| "But we should be very clear that there is a difference between efficiency savings, which may be difficult to achieve but are painless in terms of the impact on the frontline, and output cuts, which are of a very different order and require proper and mature consideration across government about the impact that they will have on our military capabilities." | "But we should be very clear that there is a difference between efficiency savings, which may be difficult to achieve but are painless in terms of the impact on the frontline, and output cuts, which are of a very different order and require proper and mature consideration across government about the impact that they will have on our military capabilities." |
| Hammond stressed that he understood Osborne's need to find savings. | Hammond stressed that he understood Osborne's need to find savings. |
| But in the past, Hammond's willingness to warn publicly about the dangers of defence cuts has angered the Treasury, and he has also displeased No 10 in recent weeks by making comments that were deemed unhelpful on gay marriage and the European Union. | But in the past, Hammond's willingness to warn publicly about the dangers of defence cuts has angered the Treasury, and he has also displeased No 10 in recent weeks by making comments that were deemed unhelpful on gay marriage and the European Union. |
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