AM: You mention the Army. A lot of people look at what's happened to the Army, the very, very poor level of accommodation, the relatively low level of pay, the shortage of front line soldiers in terms of - there's a recruiting gap of about two and a half thousand front line soldiers - and then they read that half the Navy, what's left of it, is going to be mothballed.
And they ask "are you really playing fair by the people that you as a government are sending out to fight and die for us around the world"?
GB: I was in Basra only a few weeks ago and met the Army, and I must say I've got nothing but admiration for what they are going in the most difficult of times.
AM: What about their accommodation, Chancellor? Because, you know, there's been a real issue about this.
GB: I agree that there is an issue, and although most of the accommodation has been brought up to standard, there is more to do.
So in the next few weeks there will be more being spent in a new phase of accommodation improvement.
And then over the next ten years I think we'll be putting about Â£5 billion into improving army and defence forces accommodation. But I'm convinced that we've got to more. We will do more.
AM: You'll do something for them?
GB: Yes, I'm convinced we've got to do more and we will do more. And let me say it's part of my recognition that the defence forces are not only an essential part of the security of the modern world in a way that perhaps people have not previously realised that because of the terrorist threat it's actually right at the heart of people's worries about their own future. But also they just do a brilliant job.