The MoD has won a reprieve on its £1bn funding gap

The Ministry of Defence (MoD) has won a reprieve on its £1bn funding gap this year, the BBC understands.

The Treasury and MoD have agreed on measures to be taken this year in a deal apparently brokered by Downing Street.

Under the strategic defence review announced in October, defence spending is set to fall by 8% over four years.

Jonathan Beale reports.

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