The Ministry of Defence is planning to cut 54,000 jobs without knowing how the department will be able to run itself without them, warns a parliamentary watchdog.

The need to cuts costs quickly to plug a £38bn budget black hole has led the MoD to start the redundancy programme without a coherent strategy for the future, a report from the National Audit Office says.

This has increased the danger that the department will lose skilled people it cannot afford to replace. A halving in recruitment for the military and among civilians could also have the same effect.

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