Option: Cut the officer corps of the armed forces by a quarter, returning the ratio of top brass to lower ranks the 1 to 7 level that prevailed through the cold war.
Saving: In salary alone, the saving is around £400m a year. There are then knock on savings from bonuses, housing costs, private school fees, the entourage, the offices, travel costs, training, the pension etc.
The case for a cut: Britain’s armed forces are more top heavy with officers than at any point in the 20th century. As the armed forces have shrunk in size, the lower ranks have suffered more than the officer corps. It now looks terribly unbalanced. The ratio of officers to lower ranks has fallen from 1/10 in the Second World War, to 1/7 in the cold war, to 1/6 through the late 1990s, to 1/5 today. There was no strategic decision to change this structure — it is a symptom of a bureaucracy protecting those at the top at the expense of efficiency. Most striking is the trend since 1997, which is shown in the chart below. Senior officers (colonel and above) have increased by 8 per cent, while the lower ranks have been cut by 12 per cent. What is the rationale for that? There are now more admirals than active warships and two-fifths as many RAF officers of one star and above as there are in the US Air Force, which is roughly eight times the size.