§ The final area where savings have been found is defence. In the next two years, spending will be some £250 million and £500 million lower than previously planned. In 1996–97, it will be about the same in cash terms as in the previous year. The new plans will be delivered in part by lower procurement and employment costs, and through the planned sale to a private sector housing trust of married quarters for service personnel.
§ In addition, my right hon. and learned Friend the Secretary of State for Defence has set in hand a major review of all aspects of support, right back to the headquarters in Whitehall. Savings can and will be made without affecting our foreign policy commitments.