Liam Fox warns cuts will have 'grave consequences'

Defence Secretary Liam Fox has warned the prime minister that "draconian" spending cuts while the UK is at war would result in "grave consequences".

In a private letter to David Cameron, leaked to the Daily Telegraph, he said he would refuse to back any substantial cuts to the armed forces.

Dr Fox said cuts would risk seriously damaging the morale of troops and the reputation of the Conservative Party.

He later told the BBC that discussions were "robust" but "collegiate".

Caroline Wyatt reports.