UK armed forces in cash crisis [View All]

http://www.guardian.co.uk/military/story/0,11816,1072357,00.html

Britain's armed forces are facing an unprecedented financial crisis, with the prospect of across-the-board cuts that could threaten future military operations.

So serious are the budgetary problems, say military sources, that a freeze on recruitment has been suggested but abandoned - apparently on the grounds it would be too embarrassing and send the wrong message.

Defence officials are frantically looking for other ways to cut running costs, such as holding fewer training exercises and reducing or delaying orders for equipment.

These could have a serious effect on operational effectiveness and morale, say defence officials. They add that savings on forthcoming long-term projects would not help solve the immediate crisis.