UK armed forces in cash crisis
Operational effectiveness at risk as Hoon wrestles with Treasury over MoD budget
Richard Norton-Taylor Tuesday October 28, 2003 The Guardian
Britain's armed forces are facing an unprecedented financial crisis, with the prospect of across-the-board cuts that could threaten future military operations.
So serious are the budgetary problems, say military sources, that a freeze on recruitment has been suggested but abandoned - apparently on the grounds it would be too embarrassing and send the wrong message.
Defence officials are frantically looking for other ways to cut running costs, such as holding fewer training exercises and reducing or delaying orders for equipment.
These could have a serious effect on operational effectiveness and morale, say defence officials. They add that savings on forthcoming long-term projects would not help solve the immediate crisis.
The Ministry of Defence admitted yesterday that it was negotiating with the Treasury what it called "adjustments" to this year's £31bn budget.
Officials concede this means cuts, but refuse to say how much or where they will fall.
Geoff Hoon, the defence secretary, hinted at cuts in a little-noticed speech to the Commons on October 16. He told MPs that recruitment was higher this year than anticipated, and referred to the higher cost of foreign equipment because of "significant exchange rate fluctuations".
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full at
http://www.guardian.co.uk/military/story/0,11816,1072357,00.html
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