Easy to blame the last government, actually it was the banking and financial sectors who got us in this mess.....
The banks did get the UK into a mess, as you point out. However, the MOD had a £38Bn black hole in its finances - even after SDSR they found another £1Bn of problems. You cannot blame the Banks for that, that was the Government and MOD.
Not saying Banks are blameless, they are clearly not. But if we hadn't entered this process with £38Bn in overspend, we would not be taking some of the very severe measures we now see.