OAP
It's ok.
Spending Review: Osborne Wields The Axe Again
The Ministry of Defence will see its budget maintained in cash terms at £24bn, which will mean a real-terms cut of 1.9%, but money for equipment will rise by 1% a year.
Its capital budget will also be held at £8.7bn, representing a real-terms reduction of 2.3%.
There will be no further reductions in troop levels, although the Chancellor confirmed the civilian workforce will be slashed.
And fines levied against banks for the Libor rate-rigging scandal will be used to fund the Armed Forces Covenant, setting out the nation's obligation to troops in perpetuity.
The Chancellor insisted his measures, which only spared schools, the NHS, overseas aid and the intelligence services, were necessary and fair.
Nurses, police officers and teachers will all be hit by the loss of progressive pay, which sees them earn more each year regardless of performance, with only the armed forces exempt.
