
Annual accounts from the Ministry of Defence (MoD) show that it is to cut funding for new ships and equipment by more than 20%, from about £1.8 billion a year to a maximum of £1.4 billion.
The cuts come as the MoD tries to fill a £2 billion shortfall in its budget over the next three years. Overspending has left funding even for this year uncertain.
They will force the navy to shrink its commitments around the globe, further limiting Britain’s ability to play a role in world events at a time when the perceived threat from both Russia and China is increasing.
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