There have been a number of options and studies considered over the last couple of years. 2nd PUS (Brennan) was proposing that the manning of Cyprus followed the FI model - 2-3 year tours for senior/key appointments whilst everyone else would do 4-6 month unaccompanied tours, thus removing the huge domestic overheads of SFA, schools, clinics etc. Separately there was a detailed study on contracting out most of the airfield functions. I'm sure this was done to death in earlier threads.
The previous Prime Minister had some very definite views on UK holdings in Cyprus and was keen to get the reunification talks going, but his naiviety was stunning. He failed to consult with either the FCO or MOD (let alone socialiise the issue with our Cousins); luckily, reunification in Cyprus is about as likely as...well, I don't know what, but you get the picture.
MGD: I'm not sure what you meant about clawing money back from the FCO. Compared with the MOD, FCO's budget is miniscule, and I can't see how monies could be got from the FCO in any likely scenario.