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MoD asked make £1bn of cuts which put Nato spending target at risk, claims source MoD asked make £1bn of cuts which put Nato spending target at risk, source claims
(about 9 hours later)
The Ministry of Defence has been asked to find cuts of £1bn to spending this year which analysts warned could lead the UK falling down on its commitment to Nato.The Ministry of Defence has been asked to find cuts of £1bn to spending this year which analysts warned could lead the UK falling down on its commitment to Nato.
As a member of the alliance, the UK is supposed to maintain defence spending at 2 per cent of GDP, although many other countries spend less than that.As a member of the alliance, the UK is supposed to maintain defence spending at 2 per cent of GDP, although many other countries spend less than that.
The Treasury has asked ministries – apart from health, education and international development – to make savings totalling £3bn, including £1bn from Defence, The Times reported.The Treasury has asked ministries – apart from health, education and international development – to make savings totalling £3bn, including £1bn from Defence, The Times reported.
A defence source told the paper: “The department is on budget so you would have to stop doing a lot of stuff.”A defence source told the paper: “The department is on budget so you would have to stop doing a lot of stuff.”
The insider added that reducing spending by £1bn this year “would not be a thing you could just swallow and carry on”.The insider added that reducing spending by £1bn this year “would not be a thing you could just swallow and carry on”.
Malcolm Chalmers, of the Royal United Services Institute, warned defence cuts of that level would put the 2 per cent target at risk.Malcolm Chalmers, of the Royal United Services Institute, warned defence cuts of that level would put the 2 per cent target at risk.
“The UK might still be able to get to 1.951 per cent, which could be rounded to 2 per cent, if the economy grows more slowly than was forecast in the last budget and/or more use is made of the Treasury reserve for operational spending,” he said.“The UK might still be able to get to 1.951 per cent, which could be rounded to 2 per cent, if the economy grows more slowly than was forecast in the last budget and/or more use is made of the Treasury reserve for operational spending,” he said.
Defence analyst Paul Beaver, a defence analyst, said the MoD could delay delivery of F-35 fighter jets and other hardware, but this would not cover the required amount.Defence analyst Paul Beaver, a defence analyst, said the MoD could delay delivery of F-35 fighter jets and other hardware, but this would not cover the required amount.
“The only way to [save £1bn] is by stopping doing things. That is really, really difficult,” he said.“The only way to [save £1bn] is by stopping doing things. That is really, really difficult,” he said.
An MoD spokeswoman said the Government expected to meet the Nato spending target.An MoD spokeswoman said the Government expected to meet the Nato spending target.
“We are confident that we will spend 2 per cent of GDP on defence in this financial year. The prime minister has also made clear that there will be an annual 1 per cent real-terms increase in spending on defence equipment throughout this parliament,” she said.“We are confident that we will spend 2 per cent of GDP on defence in this financial year. The prime minister has also made clear that there will be an annual 1 per cent real-terms increase in spending on defence equipment throughout this parliament,” she said.
An unnamed Government minister also told The Times that his department was “looking for savings of around 5 per cent in year cuts”.An unnamed Government minister also told The Times that his department was “looking for savings of around 5 per cent in year cuts”.
“This can be achieved through efficiencies: I haven’t been asked to look at stopping providing specific services. We’ve been planning for this and [it] should not really come as a surprise to anyone,” the minister added.“This can be achieved through efficiencies: I haven’t been asked to look at stopping providing specific services. We’ve been planning for this and [it] should not really come as a surprise to anyone,” the minister added.
A Treasury spokesman said departments had been asked “to identify options” and said there was “no savings target” for this year.A Treasury spokesman said departments had been asked “to identify options” and said there was “no savings target” for this year.