Cameron rejects Fox warning over big defence budget cuts

PRIME Minister David Cameron yesterday brushed aside a warning by Defence Secretary Liam Fox of the dangers of imposing major spending cuts on the armed forces, dismissing his fears as "unfounded".

The Prime Minister insisted the Government was committed to ensuring the military was “well-funded” and that the Strategic Defence and Security Review (SDSR) – now nearing completion – would not take “bad decisions”.

His curt rejection of Dr Fox’s concerns will be seen as fresh evidence of the heightened tensions between the Ministry of Defence (MoD) on the one hand and No 10 and the Treasury on the other over the SDSR.

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In a letter to the Prime Minister which was leaked to the media, Dr Fox said that the SDSR was looking “less and less defensible” and could have “grave consequences” for the Conservative Party and the Government.

Mr Cameron made little attempt to hide his irritation with the claims when he was questioned about them in an interview with ITV1’s This Morning.

“His fears are unfounded because we are not going to take bad decisions,” he said.

“We have thought very carefully about how to fund our armed forces properly and above all how we structure them for the future. We need to fit them for the dangerous world we live in where you need greater flexibility and a different structure of your armed forces. That is what we are going to get right.

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“Of course there are difficult decisions and of course there will be intense conversations between the Treasury on the one hand and the Ministry of Defence on the other.

“But as the Prime Minister, I can absolutely guarantee you we will have well-funded strong armed forces to defend our country.”

In his letter, Dr Fox warned of the impact on morale in the forces of imposing cuts while they were fighting a war in Afghanistan. He also expressed concern at the long-term effect the proposed cuts would have on the ability of the Royal Navy to conduct operations.

Mr Cameron insisted that while the military would receive the resources they needed in Afghanistan, major changes were needed to the way the forces were structured.

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He added: “While our troops are right now at war in Afghanistan risking their lives, they must get every penny-piece of funding and equipment they need and I will make sure that they do.”

Meanwhile, Labour Shadow Home Secretary Alan Johnson said he would be raising Dr Fox’s decision to call in the MoD Police to investigate the leak of his letter with Cabinet Secretary Sir Gus O’Donnell.

New guidelines say the police should only be involved if there was a breach of the Official Secrets Act or other “very exceptionally serious criminality”.