The cash-stricken Ministry of Defence has finally succeeded in balancing the books, Defence Secretary Philip Hammond has signalled.
In an interview with The Sunday Times, he indicated he had plugged the £38 billion "black hole" in the defence budget which ministers said they inherited from the last Labour government.
"In the next few days we will be in a position to make the grand announcement that I've balanced the books," he said.
"In terms of reducing the size of the Civil Service, the Army and the Air Force, we shouldn't have to do any more over and above what we've already announced."
In a major U-turn last week, Mr Hammond announced he was scrapping plans to acquire a more capable version of the US-built Joint Strike Fighter for the Royal Navy's new aircraft carriers.
He said the decision - in the face of soaring costs - to revert to the jump jet variant ordered by Labour was the "last big piece in the jigsaw".
The coalition must not become bogged down in a complex war of attrition over House of Lords reform, a Conservative Cabinet minister warned today. Defence Secretary Philip Hammond told the Andrew Marr show that the Government needed to focus on issues that mattered to the public - such as jobs
The Duke of Edinburgh takes part in the Laurent Perrier Meet of the British Driving Society Drive at the Royal Windsor Horse Show, Windsor Castle, Berkshire
Initial examination of the EC225 Super Puma which ditched 25 miles off the coast of Aberdeen on Thursday suggest it suffered a crack to a gearbox shaft, the Air Accidents Investigation Branch said. See PA story AIR Helicopter.
Greek President Karolos Papoulias has called the leaders of Greece's political parties to meetings on Sunday, in a last-ditch effort to broker a deal for a coalition government.
Sir Hugh also denied that police were inherently racist. There has been a catalogue of complaints against officers in the Metropolitan Police in recent months, with a wave of separate allegations of racism under investigation by Scotland Yard and the Independent Police Complaints Commission.
Demonstrators raise their hands during a protest at Puerta del Sol square in Madrid, Spain, Saturday, May 12, 2012. The protesters returned to Sol to mark the anniversary of the protest movement that inspired groups in other countries. The protests began May 15 last year and drew hundreds and thousands of people calling themselves the indignant movement. The demonstrations spread across Spain and Europe as anti-austerity sentiment grew.
Pope Benedict XVI delivers his blessing as he arrives to celebrate mass in Arezzo, Italy, Sunday, May 13, 2012.
Protesters march in downtown Moscow, Russia, Sunday, May 13, 2012. At least 5,000 are marching along Moscow Boulevard Ring in a rare unsanctioned gathering led by popular Russian novelists, defending people's rights to gather on the streets without authorities' permission.
The proposed acquisition of Gala's 23 casinos will give Rank's Grosvenor division 58 UK sites - taking it above Malaysian firm Genting, which has 45 locations including Crockfords casino in London's Mayfair. See PA story CITY Rank. Photo credit should read: Michael Stephens/PA Wire
The launch of the Soyuz spacecraft with Expedition 31 Soyuz Commander Gennady Padalka and Flight Engineer Sergei Revin of Russia, and prime NASA Flight Engineer Joe Acaba is scheduled for 9:01 a.m. local time on Tuesday, May 15
A man rows in a rubber boat at flooded area in the centre of Tbilisi, Georgia, Sunday, May 13, 2012. Emergency services say at least four people died in a flood in Georgia's capital overnight after torrential rain caused the local river to burst its banks
People paddle on the River Avon, just downstream from a weir where the bodies of a man and child were pulled from the river, after a boat overturned at a weir in Barford, near Warwick.