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Now military spending could be hit £3billion cut

The Ministry of Defence is facing a £3billion ‘real-terms’ cut to spending this year, Treasury figures suggest.

An analysis of last week’s Budget shows day-to-day expenditure falling by £2.5billion – equal to a 7 per cent squeeze. 

Meanwhile, capital spending will fall by £0.5billion.

It comes just days after Defence Secretary Grant Shapps backed the Mail’s campaign to increase the ministry’s spending to 3 per cent of GDP. 

Liberal Democrat Defence spokesperson and former Army Major Richard Foord MP commented: ‘The Conservative Government is complacent about risks to the defence of the nation and the security of the UK and our allies.

An analysis of last week's Budget shows day-to-day expenditure falling by £2.5billion ¿ equal to a 7 per cent squeeze. Pictured: British army sniper

An analysis of last week’s Budget shows day-to-day expenditure falling by £2.5billion – equal to a 7 per cent squeeze. Pictured: British army sniper

It comes just days after Defence Secretary Grant Shapps (pictured) backed the Mail's campaign to increase the ministry's spending to 3 per cent of GDP

It comes just days after Defence Secretary Grant Shapps (pictured) backed the Mail’s campaign to increase the ministry’s spending to 3 per cent of GDP

‘At a moment when war is raging on our continent, we should be bolstering deterrence, in concert with NATO allies, and supporting Ukraine. 

‘Yet these concerning figures are the latest indication of how little value this Conservative Government puts on these vital aims.’

In real terms prices, the Resource Departmental Expenditure Limit – the annual budget allocated to the Ministry of Defence – will fall from £35billion to £32.5billion next year.

Capital spending will also take a hit, from £19.2billion to £18.7billion.

Last week’s budget was conspicuous due to the absence of any major announcement on defence spending, prompting a backlash from military figures and Tory MPs.

Defending the decision, Chancellor Jeremy Hunt said the Government had already ‘done a lot’ and was committed to raising spending to 2.5 per cent of GDP.

But ‘further reforms’ were needed to the notoriously wasteful system of defence procurement before more cash was allocated.

Earlier this year Mr Shapps was forced to defend the Ministry of Defence’s decision to cut troop numbers from 82,000 to 73,000 by 2025, its smallest size since the Napoleonic era.

In real terms prices, the Resource Departmental Expenditure Limit - the annual budget allocated to the Ministry of Defence - will fall from £35billion to £32.5billion next year. Pictured: British soldiers from 21 Air Assault Battery Royal Artillery

In real terms prices, the Resource Departmental Expenditure Limit – the annual budget allocated to the Ministry of Defence – will fall from £35billion to £32.5billion next year. Pictured: British soldiers from 21 Air Assault Battery Royal Artillery

Mr Foord added: ‘The reduction in the size of the Armed Forces is frankly irresponsible. The next Government must urgently reverse Conservative cuts to the Army.’

The Ministry of Defence said the Treasury’s spending forecasts did not include supplementary spend. 

Once those figures are released, they said, the 2024/25 figures would show a real terms spending increase. 

It is not clear why this data from last year has not been reflected in the budget tables.

Today Mr Foord will present a motion at the Liberal Democrat Spring Conference calling for a full reversal of troop cuts and for NATO defence spending commitments to be met as a minimum.