As I noted following the CSR in October defence spending as a share of GDP is set to continue to fall. It is even set to fall absolutely in real terms over the next few years. Massive commitments in Iraq, Afghanistan and now in Kosovo just can't be combined with steady cuts in the military's resources. Particularly given the ongoing scandal of MoD inefficiency.
The Government's standard defence - that military spending fell under the last government is very weak. The last government both started from a high, Cold War, base and never faced the military with the massive commitments that the present Government has.
The Armed Forces are being massively let down. Good personnel are leaving thanks to the conditions created by such an overstretch. The consequences will last for decades. Soldiers are dying thanks to the Government's failure to properly resource the Army.