Sunday, August 1, 2010

Trident funded from existing Defence budget

So at last! Here is the contradiction that may see a much reduced Navy or the cancellation of Trident.

The MOD has been assuming the nuclear deterrent would be funded out of the treasury as it is separate from ordinary defence - more strategic and political.

But now the Treasury is saying the 20 billion must come out of defence funding. Of course over many years that it will take to replace the ships, so likely a few billion a year.

The Navy has left itself in a weak position, not enough Type 45's to protect two carriers. So I predict the carriers will be built, but one will be an immediate loss making export to India. Maybe also seeing the sale of some of the 45's as the defence review may reveal we need more less capable ships in the current climate.

Interesting times, and a great example of government decision making being shaped by lack of money.

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