Exclusive story details British defence cuts that will hit arms manufacturers

Reuters got to the heart of Britain’s defence spending review with the exclusive news that the new centre-right government planned to scale back the purchase of Lockheed Martin joint strike fighters and look again at plans for 2 new aircraft carriers and an air tanker deal with an EADS-led group. Over the next four years, Britain would cut defence spending by around 10 percent, a source at Britain’s defence ministry told Reuters on Sept 24. Britain’s defence budget is worth almost $60 billion and is significant chunk of earnings for European and U.S. weapons makers. Investors and defence analysts are keenly watching the conclusions of Britain’s defence review. The story was most precise so far from any news organisation in detailing where the axe would fall.