Fox's anger at defence cuts leak

He expressed his anger as it was confirmed Ministry of Defence (MoD) Police were investigating the leaking to the Daily Telegraph of a private letter from Dr Fox to David Cameron.

In it he advised the Prime Minister that the risk of "seriously" damaging morale across the Armed Forces "should not be underestimated".

And he warned the Government could provoke a "brutal" international reaction if it failed to "recognise the dangers and continue to push for such draconian cuts at a time when we are at war".

Confirming that an investigation by MoD Police would take place, Dr Fox said: "It's appalling that a Secretary of State can't write to the Prime Minister in confidence and we will be looking into that this morning."

Labour accused the Government of being in "chaos" and voiced fears it was rushing its Strategic Defence and Security Review.

Shadow Defence Secretary Bob Ainsworth said: "This is an incredible letter which reflects many of our concerns about their approach to this review.

"Rushed decisions that are not based on our strategic needs pose a real risk for our future security."

The head of the Army between 2006 and 2009, Gen Sir Richard Dannatt, said it was "most unfortunate" that the "very private letter" had entered the public domain.

Sir Richard said a consensus was emerging that the number of fast jets will be "slashed hugely" and there is a question mark over the carrier programme.

But he added: "If the UK wants to go on playing a significant role in the world, it has got to have some sort of power projection."

He called for a "proper analysis" of the threats to the UK's national security otherwise "it is simply a cuts exercise".

In the letter, Dr Fox set out specific spending implications and warned that losing amphibious landing ships would leave the country unable to mount missions such as that in Sierra Leone 10 years ago.

The Navy could be forced to withdraw from areas such as the Indian Ocean, Caribbean or Gulf, while a cancelled Nimrod MR4 reconnaissance plane programme created "some risk" to civil contingent capability around Mumbai-style terror attacks and the 2012 Summer Olympics, he warned.

Dr Fox insisted: "I wanted to let you know my views, which are shared by my ministerial colleagues."

"Our decisions today will limit severely the options available to this and all future governments."

He added: "If it continues on its current trajectory it is likely to have grave political consequences for us, destroying much of the reputation and capital you, and we, have built up in recent years.

"Party, media, military and the international reaction will be brutal if we do not recognise the dangers and continue to push for such draconian cuts at a time when we are at war."

The letter appeared following a meeting yesterday of the National Security Council (NSC) in Downing Street, chaired by Mr Cameron.

While discussions between senior ministers, officials and military top brass at Downing Street were described as "substantial", it is understood no final decisions were taken on where the spending axe would fall.

Instead, officials were instructed to carry out more work in preparation for a further meeting of the NSC, possibly as early as the end of next week, once Tory Ministers are back from their party conference in Birmingham.

Labour former Home Secretary Jacqui Smith said: "I am gobsmacked at the hypocrisy of Tory Ministers willing to use scarce police resources to investigate a leak which is politically embarrassing, but contains no information that could constitute any sort of national security risk.

"This letter shows major fault lines between Tory Ministers, but the only real risk is to Liam Fox's career and Tory claims of protecting defence spending."

Former Liberal Democrat leader Sir Menzies Campbell said: "These tensions are the direct consequence of the undue haste with which the defence review is being carried out."