From Today's Times:
The Treasury is threatening to cut defence projects worth up to £35 billion in the Government’s next spending round, The Times has learnt.
The Treasury view of a budget increase is, typically, more sceptical and it is understood to be questioning the need for a number of high-profile projects.
Those questioned include the next batch of Eurofighter Typhoons...
The Treasury’s view is that the MoD does not need Tranche 3... as well as Joint Strike Fighter...
Another possible RAF casualty is FSTA, the tanker refuelling project. The Treasury is not thought to be keen on this project, but as a Private Finance Initiative there is less pressure to kill it.