The British armed forces could be forced to shrink by up to a fifth because of a lack of money, a military think tank has predicted.
The Royal United Services Institute said the number of trained military personnel could fall from 175,000 to little more than 140,000 by 2016.
Its report said the cost of troops and equipment was rising, and major cuts were "inevitable".
The Ministry of Defence said budgets would not be cut at all next year.
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