Government plans for defence announced yesterday mean the Royal Navy will lose 1,500 jobs and 12 ships – although the defence budget will rise in real terms by 1.4 per cent a year until 2008, with an extra £3.7 billion from the Treasury.

In a bid to modernise the Armed Forces, Secretary of State for Defence Geoff Hoon’s blueprint for the future – Delivering Security in a Changing World – acknowledges the need to “rebalance and optimise our Armed Forces to meet the demands of the more likely multiple concurrent and enduring small and medium scale operations.”

There are also assumptions that once a joint force has established security, lower force levels are required, and that on most “complex, large scale operations,” the Americans will be leading a coalition effort.

At the heart of the defence transformation is the principle of ‘network enabled capability’ – the integration of sensors, decision-makers and weapon systems along with support capabilities; more efficient use of information allows UK and Coalition forces to operate more effectively.

On the maritime aspect of future conflicts, the review expects the Navy of tomorrow to “provide a versatile and expeditionary force with an increased emphasis on delivering effect on to land at a time and place of our choosing”, putting the emphasis on aircraft carrier strike and amphibious capability.

The carrier force will be based on existing ships and upgraded GR9 Harriers, but in the long term the two new carriers and Joint Combat Aircraft will assume that role, while HMS Albion and HMS Bulwark will shoulder the responsibility for amphibious operations, supported by the new Bay-class landing ships.

In terms of the destroyer and frigate force – the workhorses of the Navy – Mr Hoon believes the reduced conventional threat means there is a reduced requirement.

Accordingly, there is a need for eight Type 45 destroyers in a total strength of 25 destroyers and frigates.

To reach that figure, three of the oldest Type 42 destroyers – HM ships Cardiff, Newcastle and Glasgow – will be paid off over the next two years, along with three Type 23 frigates, HM ships Norfolk, Marlborough and Grafton.

Cardiff, Newcastle and Glasgow are among the oldest ships in the Fleet – the youngest, HMS Cardiff, was commissioned almost 25 years ago. Norfolk and Marlborough are the two oldest Type 23 frigates, and although Grafton is relatively young (she was commissioned just over seven years ago) she is due for refit, and was chosen for paying off instead of one of her older but more recently refitted sister frigates.

The review notes that “the numbers of ships remaining will continue to be sufficient to carry out our high priority standing tasks.”

The attack submarine force will stand at eight, and will reach that figure when HMS Trafalgar and HMS Superb pay off by December 2008 – meaning Superb will actually remain in service a year longer than originally planned.

The mine countermeasures force will also be reduced, in this case to 16 ships, and will be achieved by the paying off of three Sandown-class vessels by April 2005 – HM ships Inverness, Bridport and Sandown – while the improved security situation in Northern Ireland makes it possible to pay off three Hunt-class patrol vessels by April 2007, these being HM ships Brecon, Dulverton and Cottesmore.

Paid-off ships will be transferred to the Defence Logistics Organisation for disposal – options range from sale to other countries to breaking up.

The overall strength of the Navy will reduce from around 37,500 to around 36,000 over the next four years, but this is hoped this can be achieved by normal staff turnover – there are no plans for redundancies, and recruiting will continue as normal to ensure the new strength is maintained.

No changes are planned to the structure or strength of the Royal Marines, nor to the Royal Naval Reserve.

Across the other Armed Forces, the RAF is to lose around 7,500 military jobs over four years, which will bring the total manpower to around 41,000.

The review spells the end of Jaguar squadrons by 2007. Some Tornado aircraft will also go as the RAF sees a 16 per cent reduction in fast jets, and there are also reductions in the numbers of Nimrod Maritime Patrol Aircraft (MPAs) and Puma helicopters.

RAF Coltishall airfield is to close by December 2006.

The Army continues the process of switching from heavy armour to light, with a reduction of seven Challenger 2 squadrons and six AS90 batteries by 2007, four infantry battalions (three recruited from England and one from Scotland) disbanded – the manpower will be redistributed across the Army – and strength reduced to around 102,000.

Around 10,000 civil service posts are also expected to go in the next four years, and again there could be redundancies. The Ministry of Defence is also committed to reducing the number of buildings in London to two.