So, assuming the rumour that this was leaked by the MoD is true, then what's the big deal? Everyone there has suddenly realised the awful mess up they've been making since the late '70s? This is nothing new, there's been a decline in force procurement for about 30 years. Is it now that they only realise what the consequences of this are? No. They've known how we've been declining for years - and they don't really care.
I'd love (seriously) to see our Armed Forces once again a magnificent fighting force, and they are with what they've been given. I have no doubt that our training is the best in the World. However, the MoD think that they can get away with this factor alone and to hell with the equipment. Sadly, I believe that it would take a conflict slightly closer to home for them to realise that and to get them to pump more money into the Armed Forces.
With respect to the general public's opinions. We may not be so war prone as we once were (in the days of the Empire), but I still believe that they take pride in our Armed Forces and still expect them to defend us and our interests, wherever and whatever they may be. Nevertheless, as the Armed Forces do not directly affect the general public in daily life (or atleast, not that they can see), they leave the descision making on military expenditure up to the Government - believing they will be making the right choices on what to do. Should the public be given more in-depth information about what the military needs to do achieve certain things, I think their would be more of a public outcry - and increase in the budget. Regardless of whether the public believe in the Iraq and Afghanistan wars - they still want protection at home, something I think is now seriously questionable - certainly against a major force.