Wednesday 29 September 2010

Liam Fox: defence cuts will have 'grave consequences'

“Draconian” cuts to defence spending cannot be carried out while the country is at war without “grave consequences” for the Government, Dr Liam Fox has warned the Prime Minister.
In todays Telegraph, a private letter to "Call Me Dave" Cameron from the Defence Secretary is published. In it Dr Fox says that he refuses to back any substantial reduction in the Armed Forces. He says it risks seriously damaging troops’ morale.
The letter was written the night before a National Security Council (NSC) meeting on the Strategic Defence and Security Review (SDSR). In it, Dr Fox says the Tories risk “destroying much of the reputation and capital” they have built up on defence.

The review is becoming indefensible, he suggests, warning of the “brutal reaction” from the party, press and military if “we do not recognise the dangers and continue to push for such draconian cuts at a time when we are at war”.

Senior Whitehall sources suggested that his intervention was a considerable political gamble after he agreed in public that the MoD had to take the pain of cuts.

The Treasury has asked the ministry to find ten per cent savings on its annual £37billion budget and the letter will further inflame Dr Fox’s relationship with George Osborne, the Chancellor. The Defence Secretary claims to have the support of other ministers.
Despite five months’ hard work by MoD civil servants and servicemen to examine how to make at least £4billion in savings, the cuts are “financially and intellectually virtually impossible”, he says.

Dr Fox suggests that they discuss whether “we are really prepared to see Defence spending reduced to this level”. He says: “The range of operations that we can do today we will simply not be able to do in the future.”
This is being read by some as either a resignation letter or indeed a sackable offence. Perhaps it will become clear which it is as the day goes on!