There will be more cuts on the way. More to do with politics than money. After the disasters of Iraq and Afghanistan there is no way our forces are going to be committed to anything bigger than a Garden Fete for fear of failure. Add to that the change in rules which will mean that Parliament has to vote on any such adventure and you can bet that the Armed Forces will be consigned to the ceremonial. Hence, no need for any real investment.
I want to see how he gets out of the current debacle. He is not a Statesman nor is he good in front of the cameras. So, when he has to stand up and justify the latest death/loss/failure I think he will be less than convincing. At least Tony could weep on cue.
On the plus side, at least he will have noone else to blame than himself when the wheels finally come off the New Labour bus. Just a shame we don't have a viable opposition.