The defence secretary is today expected to announce 12,000 manpower cuts across all three armed forces, as part of the government's overall defence strategy.

Speaking in the Commons, Geoff Hoon will highlight the increase in the defence modernisation fund to £1 billion, as announced in last week's spending review.

First Sea Lord Admiral Sir Alan West has already indicated that the Navy's ambitious shipbuilding plans are unsustainable unless older ships are scrapped.

There is expected to be a commitment to programmes including the Joint Strike Fighter aircraft and the Astute attack submarine, but Type 42 and Type 43 ships are expected to be for the chop.