Fox stands by defence cuts in spite of Libya

He said the controversial cuts set out last year would continue “as planned” despite the sudden military intervention in North Africa.

He told a TV interviewer the Strategic Defence and Security Review (SDSR) had “envisaged” the kind of scenario that had unfolded in Libya, where UK forces are enforcing a no-fly zone approved by the United Nations.

Last week the Ministry of Defence said it had reached an agreement with the Treasury over a reported overspending of £800m in this year’s budget.

However, Dr Fox indicated that there was no prospect of the defence review being reopened, despite Labour calls for a rethink.

“People have been saying why don’t we open up the defence review all over again but if you try to redo the defence review with the same assumptions, with the same world picture and the same inheritance we have, within the same budget, you will come to the same conclusion,” he said.

Pressed as to whether the spending review would continue as planned, he added: “It continues as planned because the financial position in which this country finds itself has not changed.

“We need to recognise the dire state that we would be in if we didn’t have a deficit reduction plan because we’d find interest rates going up and the economy potentially slowing down again.”

But Shadow Defence Secretary Jim Murphy accused Dr Fox of having “his head in the sand” and called for a review.