Concur LJ - and introduce a common sense manning cap.
If you can only field x squadrons then you only need x/2 thousand people in your Air Force. If you only have 30 DD/FF hulls you only need 20,000 in your navy.
And the actual kicker. As the military you pay the going rate for the cheapest kit that fulfils the actual requirement. And if someone wants you to buy stuff from UK suppliers that's more expensive and worse -well they pay, not you.