The Prime Minister is “actively engaged” in a reassessment of Britain’s military capabilities and planned reductions in equipment and manpower, sources have disclosed.

The rethink has raised hopes that some of the cuts to military aircraft and ships in the Strategic Defence and Security Review (SDSR) could be postponed or even reversed. Insiders said it was not too late for a change of mind on the decision to cut the number of RAF Tornados and scrap surveillance planes. Some Royal Navy frigates could also be spared, or have their retirement delayed.
In the first sign of compromise on defence cuts, Mr Cameron has ordered the Treasury to give the Ministry of Defence a reprieve on its overspent 2011-12 budget. The £800 million climbdown will spare the Armed Forces further cuts this year. Senior government figures admitted that the Libyan conflict has raised questions about the wisdom of cuts that will leave Britain facing a “dip” in its military capabilities for several years.
“The debate is live. The Prime Minister is very much part of it. There’s a lot of objective thinking going on,” said a senior defence source.
Ministers remain adamant that there is no scope for a formal reopening of the defence review. Its fundamental analysis of Britain’s place in the world and the threats the nation faces is not being questioned.