The evidence is that readiness is suffering because of in-year pressures on budgets at a crucial time of preparation to meet potential conflict. It is vital that the additional funds allocated to defence by the Government do not get swallowed by defence inflation. Both we and the Government recognise the importance of public support (and sacrifice) for the difficult choices which must be made to finance the defence posture required by the current threat. Any money wasted due to an inability to increase capacity will have a significant impact on public opinion. (Conclusion, Paragraph 92)