ORAC, true regarding funding. I was told that the RNoAF 'agreed' to provide SAW to get its funding slice as well but then failed so to do.
I think there was some talk of replacing Bloodhound with a more advanced system, like Patriot, but that we could get some form of benefit by standing down the Bloodhound force early and getting the new system a few months later taking the capability gap at risk. There followed the collapse of the USSR and GW1. The capability gap continued and then was allowed to become 'permanent'.
Early in 1989, I was told by a boss of mine who was on a tour at MoD, that Patriot was offered to the UK on very good terms back in 87/88 and that the MoD nearly took up the offer. The RAF had problems with replacing Bloodhound with the basic Patriot system however, due to the fact that Bloodhound 2 had four times the range and a single missile section could cover 360 degrees while 3 Patriot battaries (i.e. 3 radars) were needed to give 360 degrees of cover, thus the offer was rejected (more likely a lack of money was the real reason). When the wall fell and the cold war came to a close, the MSAM project kicked off, but was killed by lack of funding (BAe were offering a lash up of Patriot and Rapier FSC).