19,000 UK Troops Will Be Chopped From Army

Britain's Army will be shrunk to its smallest size since the Boer War as regular soldiers are replaced with part-time reservists.

Defence Secretary Liam Fox announced in the Commons that the 101,000-strong force would be cut by up to 19,000 by the end of the decade.

This would reduce the numbers to just 82,000 - the smallest in 110 years.

Dr Fox said the reduction would see the military increase its reliance on the reserves with more money made available for their training.

But following "protracted" discussions with the Treasury, the beleaguered department has secured a rise in the defence equipment budget of 1% year-on-year from 2015 to 2020.

Sources say this will ensure big spending projects continue to completion, such as the new aircraft carrier and the Joint Strike Fighters it will carry.

It will also put the Ministry of Defence 's budget on an even keel for the first time in living memory.

Dr Fox told MPs in the Commons that an additional £5bn of uncosted spending has been found in the MoD's budget - on top of the £38bn black hole already identified.

He believes the MoD's finances will be balanced by the end of the decade, bringing to an end years of overspending and financial mismanagement.

But critics will doubtless focus on the size of the cuts to the regular Army and suggest again that strategic decisions are being taken for fiscal reasons.

The Defence Secretary told Sky News the changes are designed to bring the ratio of regular to reserve forces in line with that of international allies.

The United States has 35% of its force strength from reservists, as does Canada.

"In Britain, we have a much bigger ratio of regulars to reserves than other countries and we've seen our reserves, sadly, run down and neglected in recent years and I want to see that trend reversed," Dr Fox said.

"When we look at countries like the United States and Canada and Australia, where the ratio is very different, I think we should be closer to that kind of position.

"However, if we're going to do that we have to put substantial amounts of resources into the reserves.

"That's money for training, money for equipment and potential re-rolling of the reserves to give them more specifically-defined responsibilities.

"That again would be closer to the experience in other countries and something I want to see."

The changes will mean around 30% of Britain's strength will come from irregular forces.

Additional funding for the reserves is also expected to be announced.

"We're pleased to have come to an agreement with Number 10 to fill the gap," said one senior defence source.

"Following protracted, lengthy discussions with the Treasury we will see the departmental black hole wiped out by 2020.

"This is the first time in the modern age the books will have been balanced."

Mr Fox also said on Sunday it was "offensive" to refer to reserve soldiers as "Dad's Army", insisting they had played a vital role in Afghanistan.

It comes as MPs warned Mr Fox of the perils of a premature withdrawal of British troops from Afghanistan.