Hoon: Facing cuts

The Ministry of Defence has dismissed as "purely speculative" reports suggesting Geoff Hoon is facing large scale defence cuts in the looming spending review.

According to the Mail on Sunday newspaper the chancellor has ordered the deepest defence cuts for 20 years.

The newspaper suggested Hoon would be forced to dramatically restructure the armed forces in order to implement the spending cuts.

The spending review is expected within the next two weeks - with a major defence statement due before the summer recess.

The Sunday newspaper claimed it had seen leaked documents which would result in a 10,000 reduction in RAF personnel, the axing of four battalions and the scrapping of six Navy warships.

The war in Iraq is also said to have left Hoon with a £6 billion bill which will not be met by the Treasury.

A spokeswoman for the Ministry of Defence denied that the reports were accurate.

"Far from cuts, the 2002 spending review delivered the biggest sustained increase in defence spending for 20 years and on top of that, we have met in full the cost of campaigns in Iraq, Afghanistan and the war on terror," she said.

"We are ensuring, and will continue to ensure, that our armed forces are best equipped to do the job we ask of them."