The Guardian reports today that Defence chiefs are drawing up plans for big cuts in Britain's military equipment programme which may result in abandoning or delaying projects as a result of a £2billion budget cut. We constantly review requirements and are determined to do more to support our people here and on the frontline. That is why we are undertaking a short examination of the equipment programme to look at our planning assumptions for equipment over the next ten years. The examination of the equipment programme is focusing on two issues above all: bearing down on cost increases to equipment programmes; and rebalancing the equipment programme to better support the frontline. Priorities can change, not least in response to the experience of operations. And our estimates of the cost and phasing of expenditure change too. Our aim is to adapt in the face of rising costs, shift the balance more towards support of current operations, and do more for our people. While this short exercise is going on, understandably some decisions will be put on hold but where the direction of future policy is clear, this work will not hold up important decisions. This is not a moratorium on equipment expenditure.