It says they aim to reduce running costs by 25%; well the civil service in entirity is only 10% of the departments costs so I suspect it will be a lot more.
Roll on the Defence review to find out how bad things are going to get. Running costs include fuel,spares etc. If you reduce what you intend to do running costs are obviously lower unless you have already signed the contract and have to pay up anyway.
What's the betting the wrong things get cut?