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MoD denies Navy could be halved MoD denies Navy could be halved
(about 2 hours later)
The Ministry of Defence has denied claims the number of Royal Navy ships could be cut due to budget pressures.The Ministry of Defence has denied claims the number of Royal Navy ships could be cut due to budget pressures.
Navy cutbacks are being considered after the Treasury imposed tight budgets on the Ministry of Defence.Navy cutbacks are being considered after the Treasury imposed tight budgets on the Ministry of Defence.
Documents obtained by the Sunday Telegraph suggest five warships could be decommissioned from next April.Documents obtained by the Sunday Telegraph suggest five warships could be decommissioned from next April.
This halving in numbers would leave the navy only able to carry out "one small scale operation", but the suggestion has been dismissed by the MoD.This halving in numbers would leave the navy only able to carry out "one small scale operation", but the suggestion has been dismissed by the MoD.
The newspaper was sent details of arguments between senior officials and Treasury Chief Secretary Andy Burnham over the Comprehensive Spending Review settlement.The newspaper was sent details of arguments between senior officials and Treasury Chief Secretary Andy Burnham over the Comprehensive Spending Review settlement.
Savings neededSavings needed
Under the deal, announced in July, the MoD will receive an annual increase of 1.5% above the level of inflation for the years 2008-11.Under the deal, announced in July, the MoD will receive an annual increase of 1.5% above the level of inflation for the years 2008-11.
However, there was also a commitment to purchase two new 65,000-tonne aircraft carriers, at a total cost of around £4 billion - meaning savings had to be found elsewhere to maintain funding for operations. However, there was also a commitment to purchase two new 65,000-tonne aircraft carriers, at a total cost of around £4 billion - meaning savings had to be found elsewhere.
An e-mail from the whistleblower read: "The chief sec directed that no further money from the CSR would be allocated to defence and to maintain force levels the dept must find the savings/cuts.An e-mail from the whistleblower read: "The chief sec directed that no further money from the CSR would be allocated to defence and to maintain force levels the dept must find the savings/cuts.
"For the Royal Navy, the poor CSR deal and the commitment to two carriers is such that a proposal for the immediate decommissioning of five ships (frigates and destroyers) from April next year has been considered."For the Royal Navy, the poor CSR deal and the commitment to two carriers is such that a proposal for the immediate decommissioning of five ships (frigates and destroyers) from April next year has been considered.
'No decisions''No decisions'
"This would reduce the navy's capabilities to just one small scale operation and that is it.""This would reduce the navy's capabilities to just one small scale operation and that is it."
But MoD sources dismissed the idea that the number of ships could be halved, insisting such documents were produced as a matter of routine.But MoD sources dismissed the idea that the number of ships could be halved, insisting such documents were produced as a matter of routine.
An MoD spokesman said: "No decisions have been taken to make changes to force structures. As ever we continually review the defence programme.An MoD spokesman said: "No decisions have been taken to make changes to force structures. As ever we continually review the defence programme.
"The CSR settlement sees the continuation of the longest period of sustained real-terms growth in planned defence spending since the 1980s.""The CSR settlement sees the continuation of the longest period of sustained real-terms growth in planned defence spending since the 1980s."