NEW: @DefenceHQ will need about £8billion from the Treasury over the next 2 years to protect the defence budget *in real terms* against the impact of inflation & foreign exchange, Defence Secretary @BWallaceMP has just indicated in comments to @CommonsDefence
This is really important as it gives a sense of what Ben Wallace will be fighting for in his discussions with Chancellor @Jeremy_Hunt just to maintain a planned increase in defence spending out to 2024/25 - let alone striving to increase the defence budget any further.
The Defence Secretary was specifically referring to the projected pressures caused by inflation and foreign exchange rates on the defence budget. He said: "The inflationary pressures on my budget for the next 2 years is about £8billion - and forex".
He continues: "The initial battle for the next few years is insulation from inflation and forex".….