A spokeswoman for the Ministry of Defence said: Tough decisions had to be made by this Government to bring the Defence budget back into balance however we have been clear that that there will be a 1% increase in the Equipment Programme and the UK will continue to have the fourth largest defence budget in the world. We work closely with all our international partners and will remain the partner of choice for the US. Our Armed Forces will be smaller but they will be more flexible, adaptable and ready to face future challenges.