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Page last updated at 07:44 GMT, Saturday, 16 October 2010 08:44 UK

PM intervenes over MOD budget

It has emerged that the budget for the MOD was finalised after the Prime Minister personally intervened, insisting the armed forces must have enough money to do their job.

David Cameron ultimately came down on the side of the Defence Secretary Liam Fox, who has fought a tough battle against the Treasury's desire for cuts of at least 10%.

Our defence correspondent Jonathan Beale explains.

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