Covered in the paper today; http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/10/28/ntroops128.xml "The shortfall will leave servicemen without Apache gunships, Land Rovers and Chinook transport helicopters, according to experts Future weapons projects, including the new generation of Astute nuclear submarines and even the Eurofighter, are also at risk. The Navy has already been forced to "mothball" all Type 42 destroyers and several Type 22 frigates to save money. Now, defence experts will warn in a report to MPs that up to half of the Navy's warships will have to be withdrawn from service due to the poor defence budget." So the budget is increased but the cost of operations is to come from this money. Looks like the government has thought this through again.