I agree that ASaC Merlins do not appear to be funded at the moment but the ASaC system has proven its value as a surface search & control asset as well as in its AEW role. Sure, with the Carrier gap there will be no FJ to control from carriers but they are extremely valuable in protecting our very scarce surface assets by extending sensor range massively over what can be provided from the top of a mast. The system has also proved its value in littoral & continental control roles.
I would suggest that ASaC Merlin is essential, not a nice to have. Unless those nice chaps from Waddington are going to be able to permanently station an E3-D over our deployed assets, whether we are deploying a Task Group or individual (but valuable) assets hunting boghammers?