CONFIDENTIAL
CONFIDENTIAL
effect of the decisions will be to reduce. as compared with 1974-5,
the proportion of the planned defence budget devoted to manpower
and to increase the equipment share as follows:
E 35%
M 47%
0 18%
E
40%
M
43%
1974-75
(fig. 5)
17%
Annual
average 1979-80
78. This picture masks a number of changes in emphasis
83-84
in the programmes of the individual Services. The Navy's share of
the defence budget is planned to increase because the Navy is
entering a period of re-equipment;
but this increase has been
substantially modified by the reduction in the size of the new con-
struction programme including the decision not to replace the
present amphibious lift with purpose-built ships. Significant
savings in Army equipment have been offset by a positive decision
to keep Army manpower and combat capability at the level necessary
to enable it to carry out its primary tasks. The large reductions
in Royal Air Force transport aircraft are offset by the decision to
retain, and i n
some cases improve the strike, attack and
air defence airforces committed to NATO. An approximate breakdown
between the Services for 1979-80
position in 1974-5, is:-
83-4, as compared with the
I-36
CONFIDENTIAL
CONFIDENTIAL