The U.K. defense budget has been running hot for more than three years. But 2009 will likely see increased stresses on the budget, as the cost of operations, never fully funded from government reserves, requires more money from the core defense budget. And even if the U.K. presence in Iraq winds down (£1.4 billion—$2.14 billion—of supplementary costs in 2007-08), operations in Afghanistan are ramping up (£1.5 billion of supplementary costs in 2007-08). The equipment budget is ...


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