Spending Review: Ministers agree MoD budget cut

Cutbacks in the UK's £37bn annual defence budget have been finalised ahead of the chancellor's Spending Review, the BBC understands.

The reduction is expected to be less than the 10% the Treasury had been seeking, possibly around 8%.

The Army is expected to have to cut personnel, although the Navy will get two new aircraft carriers.

Labour accused ministers of trying to "soften up" the public by talking about big cuts, then backing smaller ones.

Caroline Wyatt reports.