| Drastic cutbacks ahead planned by the Ministry of Defence.
UK MoD prepares for belt tightening
Jane's understands that in current financial years the ministry has had to find economies of about GBP150 million (USD293.4 million) to bring it back within budget.
By 2008 a further GBP1 billion has to be saved to ensure the MoD meets its CSR target of annual spending of GBP33.4 billion.
MoD officials have drawn up a menu of cutback proposals in an effort to save money on projects not directly associated with operations in Iraq and Afghanistan. This includes withdrawing six Royal Navy destroyers and frigates from frontline service to save GBP150 million and significantly scaling back RAF flying hours for UK-based training and operations.
But these two rounds of economies do not look like they will be able to resolve the MoD's spending problems. Leaked ministry documents suggest the MoD faces a GBP868 million over-commitment in the period 2009-12.
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