Call me paranoid but a thought always at the back of my mind is how this fits the political aims of various groups. Having the finest man for man (sod PC!) Military on the planet has, arguably, sustained our position as a post Imperial world power. There have been throughout most of the last Century those who resent and oppose that; and I suspect some who post on this Forum. I'm thinking of the likes of International Socialists (the "thinking" end of the original Labour Party), radical Economists who feel their ideals spoiled by spending an a military and its infrastructure, self serving business owners that see their wealth being diverted outside their immediate benefit and the pink fluffy people for whom any form of violence is immoral. Was that the deal given to New Labour? Castrate the military, by whatever means, and we'll leave you to your Thatcherite tendencies and Constitutional reform (which they would like). It would explain how he and his are so unbelievably fireproof; or am I crediting f**kwits with organisational ability?
One thing you can put money on is that Joe Public may huff and puff a bit but, sure as hell, won't want to put their hands deeper in their pocket (more than Uncle Gordon already has) nor accept service reductions in other areas. As others have commented elsewhere, this will lead to implosion of the RN. Does it take us a further step towards Canadianisation?