HC Deb 15 December 1976 vol 922 c750W
Mr. Watkinson

asked the Secretary of State for Defence what reductions have been made in the defence budget since the reduction of £100 million in 1977–78 announced by the Chancellor of the Exchequer on 22nd July 1976.

Mr. Mulley

Since 22nd July 1976, the Government have decided in the course of the public expenditure survey, that in order to assist the country's economic recovery substantial reductions must be made in public expenditure to which it is necessary for the defence budget to contribute. Including those announced by my right hon. Friend the Chancellor of the Exchequer this afternoon, these reductions in the defence budget amount to £100 million in 1977–78 and £230 million in 1978–79.

In accordance with previous practice I have informed NATO of the reductions and intend to consult the Alliance about the possible measures necessary to give effect to them.

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