Liam Fox negotiating contract for defence budget
Defence Secretary continues procurement negotiations
Defence Secretary Liam Fox has confirmed he is currently
negotiating a contract for the defence budget.
Last week, chancellor George Osborne announced that the cost of
renewing the Trident nuclear deterrent programme must be paid for
out of the defence budget, resulting in a £20 billion shortfall for
Mr Fox claimed the renewal of Trident will be more
cost-effective than the alternatives, although he admits it may
affect other areas.
"The crux decision is what are the risks we are willing to take
for Britain's national security.
"A lot of the contracts that have been entered into will be as
expensive to leave as to continue but we will want to make
decisions about what is best for the defence in the long term," he
The chancellor confirmed in his Budget speech that all
government departments would face average cuts of 25 per cent,
while some could even have their budgets slashed by 40 per
Mr Fox is expected to meet the national security council later
this year to confirm the budget and make an announcement in the
last week of October.