There were legitimate reasons to reform British defence spending, and retaining a force at its Second World War size was unrealistic. The criticism is that decisions increasingly followed an acceptable spending figure without first establishing the capabilities the country required. In this interpretation, the loss of defence and manufacturing independence associated with the 1990s had roots in the 1960s. A business analogy contrasts an unavoidable operating cost with a wage bill continually squeezed for savings. Defence depends on accumulated capability and experience, which makes that approach hazardous for a state.
Notable Point · 6:58-9:48
Defence spending and the cost of losing capability
The budget critique accepts the need for postwar reform while tracing declining independence to decisions made before the Cold War ended.