Trident costs must come from MoD budget, Osborne says

The full £20bn cost of renewing the UK's Trident nuclear deterrent must be paid for by the Ministry of Defence, George Osborne has said.

Traditionally, the Treasury has always found the money for the submarines. The MoD is currently having to contemplate cuts in its budget of between 10% and 20%.

The Chancellor's comments come as Defence Secretary Liam Fox warned it would be "very difficult" to maintain other MoD projects if more than half its budget went on funding Trident.

Jonathan Beale reports.