I just finished reading that also in todays newspaper.
One problem is that the curtailment of defence spending is going to implode very seriously on the work force in the British arms industry. This is something which, quite understandably, HMG would prefer to keep in the dark untila fter the elction when it can be blamed on someone else. the Conservatives should pounce on this report and flag it furiosuly-but they probably won't. They really do need to ungest a little more rabble rousing backbone, that lot do.
The problem of course starts with the Navy - when doesn't it? For Britian to have its own aircraft carriers is tactically debatable and probably more rooted in the old labour terror of the ship construction industry than anything else. Why have the dole if it is going to cost more to keep men in jobs than to have them out of work?