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The real meat on the bones here is that many of the "trade" services/corps will be replaced either by civilian contractors or more often by TA specialists; this move is a direct result of experience since Kosovo and will make a significant difference to military costs and also effectiveness. Experience has shown that TA Medical teams particularly trauma and A&E teams have significantly increased survival rates for wounded personnel and much of what they have learnt has also been fed back to civilian hospitals. Logistics, with the general exception of ordnance, is more cheaply and better handled by civilian logistics companies such as Eddie Stobart etc.
The upshot is that much more of the defence budget will be spent on front line troops and materials ensuring our service personnel get the best equipment etc.
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