The UKs defence budget cuts, announced in 2010 as part of a wider policy of fiscal retrenchment to address the countrys deficit, came under criticism by a defence committee in August 2011, The Wall Street Journal reports. The select committee, composed of lawmakers from the UKs major political parties, raised alarm that the cuts will undermine the UK militarys capabilities, arguing that the armed forces are in danger of dropping below the size needed to deliver its commitments. They argued that cuts to equipment, particularly aircraft, will severely hamper the defence of British overseas territories, including the Falklands Islands.

In total, the government is planning to slash defence expenditure by more than 8% as part of the governments plans to limit broader public spending. While the Ministry of Defence has been protected from the 20% cuts that have hit some other government departments, the armed forces are set for a significant squeeze which will have noticeable knock-on effects for UK defence contractors.

Meanwhile, in a further controversial move, defence secretary Liam Fox announced to the House of Commons in May 2011 that the government will be spending GBP3bn on preliminary work for new ballistic missile nuclear submarines. Spending on submarines is a difficult issue for the Conservative- Liberal Democratic coalition, which led the Ministry of Defence to announce a new study into alternatives. The Liberal Democrats are more sceptical of the benefits of Britain making significant investment into a new submarine fleet at a time when public spending is being slashed across the board.

Overall, the government said that spending on the renewal of the British nuclear deterrent is likely to cost between GBP20bn and GBP25bn, greatly above the original price tag of GBP11-14bn which had been estimated in 2006. The government, in a political concession to the Liberal Democrats, has agreed to delay any final decision on the Trident replacement until 2016, a year after the latest possible date for another general election.

Although lively debate continues in the UK regarding the future posture of British defences, both the Royal Navy and Royal Air Force acquitted themselves well during recent combat operations in Libya.

The UK was a significant contributor of forces to support NATO-led efforts to safeguard Libyan civilians against forces loyal to Libyan leader Colonel Muammar Qadhafi. The operation gave the UK the opportunity to showcase several new platforms and weapons systems, including the Eurofighter Typhoon combat aircraft, the dual mode Brimstone air-to-ground missile and the operation of Apache AH Mk.1 attack helicopters from ships based in the Mediterranean. Furthermore, the UK demonstrated that it could contribute this large number of forces in a high-tempo operation while continuing to also involve itself in continuing operations in Afghanistan.