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The review of defence and foreign policy led by Boris Johnson’s chief of staff Dominic Cummings will be the most radical since 1945, according to those already involved.

The brief is to look at where Britain stands post-Brexit, where the country will be in 2030, and what will be required to protect and promote its interests.

The inquiry will incorporate the five-yearly defence and security review, due next year. In particular it will address the cost overspend in procuring equipment — now thought to be a hole in the defence budget of some £7 billion.

Cummings is known to be doubtful about the Navy’s two 70,000 tonne aircraft carriers, alone costing some £6.2 billion.

He and John Bew, a noted academic and Downing Street adviser, will also have to look at other costly MoD programmes such as the need to upgrade the Astute hunter-killer submarines after only three have been built.

A greater proportion of the defence budget, currently £42 billion a year, will have to go to paying personnel. All three services face manning and recruiting shortfalls, and more flexible contracts will have to be introduced. The review will look at all government departments and agencies involved in Britain’s international profile and relations, including the overseas aid department and Dfid.

There is strong speculation that that Dfid will be put under the Foreign Office, which will have tighter control of the foreign aid budget.

The UK spends just under £14 billion on aid — one of the few countries meeting the UN goal of spending 0.7 per cent of national income on overseas assistance. Critics would like aid realigned more with the UK’s most direct foreign policy and defence needs.