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Parliament, with our Allies and partners and with industry before
definitive decisions were taken. The Government announced its
decision to reduce defence expenditure progressively as a proportion of GNP to 4 per cent over the next ten years. Compared with the
estimated costs of the previously planned programme, this will
achieve substantial savings rising from £300 million in 1975-76 to
about £500 million a year by 1978-79 and to some £750 million a
year by 1983-84; and a total saving of some £4,700 million over the period (all at 1974 Survey prices). This means that whereas
in real terms there will be a small increase in 1975-76 and 1976-77,
defence expenditure is planned to remain broadly at the same level
thereafter for the rest of the review period. Paragraph 74
gives more details of the savings. Within this programme a new
balance between commitments and capabilities and between manpower
and equipment expenditure will be achieved to meet the Government's
strategic priorities.
Consultations
11. As part of the process of consultation there have been debates
in both Houses of Parliament in December 1974; and much information
and explanation has been provided in answer to a large number of
Parliamentary Questions. The Defence and External Affairs Sub-
Committee of the Select Committee on Expenditure has taken written
and oral evidence from the Ministry of Defence. The views thus
expressed together with those made known to us by a wider public
have been carefully considered by the Government in reaching its
decisions.
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