What has not been mentioned anywhere above is the dilemma the UK finds itself in and the impact on retention. Whilst the huge deficit is suppressing public sector pay, and thus that of the Forces, the economy is booming in the private sector with near record job lows. What does this mean? It means it is easy to leave and get a job.
When I was a lad in the RN conflict was not really an issue and life was all about Standing NATO Groups and cocktail parties around the N Atlantic and Med. The really lucky ones went on world deployments via HK and AUS. We all loved it but no medals.
But then we went to war in the 90s and it remained like that until today and people wanted to go to the war zones and get their medals. Retention was pretty high and the pay good. Now things are changing. The tempo is still high due to lack of kit but not many medals. Pay remains good but dropping off rapidly...retention bites.
Re leadership. I can’t talk about the RAF (comments above not good) but the RN seems pretty well led. 1SL, VCDS and Fleet Cdr are top blokes, with some good guys behind them to follow. I would put money on 1SL or VCDS to follow Peachy as CDS.