Some good view points....
Personally, despite being bankrupt now I would not 'slash and burn' knowing that the future growth of the economy will happen much quicker than any desired (4 yearly) future Defence growth.
As to nothing to nick here in UK, you are assuming that we as a nation are really going to pull up the drawbridge and adopt an isolationist policy - is that what people think?
I do not get that feeling, hence my belief that despite the recent British public distaste for Iraq and Afghanistan, that when/if NATO or another Coalition force is required that the UK military will be asked to fight again. Lets ignore UK shores (and the much talked of resurgence of the Russian bear) and also the historical examples of Gib and the Falklands, but are we going to ignore Commonwealth/other nations in the future when South East Asia spills over, or when Afican nations population/resources result in war and bloodshed?
Has anyone forgotten that only in 1918 people were saying that the 'Great War' was 'the war to end all wars' - are we now saying that the UK people will not get involved with future wars?
If so, I fully accept all of the posts above, and humbly revert to a military that will do the occasional overseas NEO and/or International Disaster relief.