MoD faces new cuts in cost review

16 May 2011 Last updated at 01:02 GMT  The Army is facing the loss of 7,000 posts by 2015 under the earlier plans The Ministry of Defence is seeking to find more savings from the armed forces in the next financial year.

A three-month study, reporting in July, will consider which personnel and equipment programmes could be cut.

Last October's strategic defence and security review saw HMS Ark Royal and the Harrier fleet scrapped and the loss of 41,000 forces and civilian jobs.

The MoD said it was assessing whether spending assumptions made in the past were still affordable.

The strategic defence and security review unveiled in October 2010 outlined the future shape and size of Britain's armed forces.

Under the plans, defence spending is to fall by 8% over four years.

The RAF and navy will lose 5,000 jobs each, the Army 7,000 and the MoD 25,000 civilian staff. Among the other cuts was the scrapping of the new Nimrod surveillance plane.

Continue reading the main story Harrier jump jet retiredNimrod spy plane cancelled5,000 RAF personnel axed over five years5,000 Navy personnel cut7,000 army personnel cut25,000 civilian MoD staff axedTrident replaced but ￡750m savings from fewer warheadsTwo aircraft carriers saved, but one will not enter serviceThe MoD says the strategic defence and security review is not being re-opened.

But after completing the planning round for its budget for the financial year ending in March 2012, its work for next year has already started.

The MoD says the new study is part of work being done to ensure it matches its planning assumptions with its spending settlement, and closes the gap between the two.

BBC defence correspondent Caroline Wyatt said more still needs to be done to balance the books.

Potential targets could include HMS Illustrious, the UK's last surviving aircraft carrier, which is due back from a refit next year, as well as plans for a new fleet of armoured vehicles, our correspondent added.

News of the study come as Defence Secretary Liam Fox prepares to address Parliament later on amendments to the Armed Forces Bill that will see principles of the military covenant - the nation's duty of care to personnel - written into law for the first time.

It is understood that measures to improve soldiers' welfare in areas such as health, housing and education for forces' children will also be revealed.