I still don't see any commitment from Osborne to meeting the 2% NATO targets. Apparently all he has committed to is "keeping the country safe".
So if the PM is commited to no further cuts in the Regular forces whilst running a 1% increase in the equipment budget, that doesn't leave much wriggle room. The implication in the PM's statement would seem to point to either Reserves taking a hit, which then drives a proverbial tank through FF2020 assumptions or continued pay and pensions tinkering and ongoing long term pay restraint for the duration of the next Parliament.