Here are the main points of Geoff Hoon's defence review announced in the House of Commons on Wednesday.
Royal Navy to lose 12 ships and vessels,
including HMS Cardiff, Newcastle and Glasgow, which will go by the end of 2005.
Three Type 23 frigates, HMS Norfolk, Marlborough and Grafton, to go by March 2006.
Three Northern Ireland patrol vessels, HMS Brecon, Dulverton and Cottesmore, will be paid off by April 2007.
The Army is to lose four infantry battalions bringing the total down to 36, of which one battalion will go from Scotland and three from England.
The number of personnel currently at 108,500 will drop to 102,000 - defence chiefs said that in real terms 1,500 would be lost.
The RAF is losing four aircraft squadrons and RAF Coltishall in Norfolk will close by December 2006. More may close afterwards.
The RAF will shed 7,500 jobs by 2008, the Navy 1,500 and the Army about 1,000 jobs, with a further 10,000 civilian posts also lost.
The Navy will gain two new large aircraft carriers.
Overall, the budget for armed forces is to rise by £3.7bn, from £29.7bn this year to £33.4bn by 2007-8.
BBC NEWS: VIDEO AND AUDIO
The BBC's Paul Adams
"To make way for the future, some past will go"
RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites