Armed forces to be overhauled to meet threat of terrorism

The Government has announced what was described as the biggest overhaul of Britain's armed forces in recent history, placing the emphasis on mechanisms to combat the threat of terrorism.

The "new chapter" to the 1998 Strategic Defence Review gives priority to new and upgraded hi-tech equipment for surveillance and communications, the creation of more "rapid reaction" forces with light armoured vehicles, and the augmentation of police forces with a specially trained unit of 6,000 reservists.

Although the end of the Cold War has seen the prospect of conventional conflict recede, the country faces a new threat of chemical, biological, or nuclear attack from organisations such as al-Qa'ida, military analysts believe.

Outlining the measures yesterday, Geoff Hoon, the Secretary of State for Defence, said the armed forces needed to be able to "detect, decide and destroy" such threats at home and abroad.

The reforms, given added urgency by intelligence warnings about potential terrorist attacks on Britain because of the Government's backing for the United States in its "war on terror", has been made possible by Gordon Brown's largesse in the Comprehensive Spending Review.

The Chancellor has provided an extra £3.5bn for the defence budget by the end of 2006, the biggest sustained real increase in defence spending plans for two decades, to fund extensive programmes that will be in place in the next five years.

The new face of combat, defence chiefs believe, means that Britain may have to be engaged in up to half a dozen anti-terrorist operations at any time. A key concept is "network-enabled capability", which will enable faster gathering of electronic intelligence from satellites and spy planes, to allow strike units on the ground to move more swiftly.

Britain's paucity in this field was evident in the Afghan war, which illustrated the superiority of the American technical equipment in the field.

One of the most revolutionary aims is to produce a new generation of light armoured vehicles needed for the modern version of "light cavalry action". The new technology wanted by the Army, known as the Future Rapid Effects System, includes plastic armour, and engines powered by electricity or even solar power. Immediate measures include upgrading the E3D Awacs surveillance aircraft, and accelerating the programme to develop "Watchkeeper" unmanned surveillance aircraft.

Special forces capabilities will be enhanced, while the MoD is to acquire "appropriate technology" to deal with the threat of chemical, biological and nuclear weapons, Mr Hoon said.

Joint regional liaison officers will be created to work with all levels of government on emergency planning matters. Reaction forces from all three services of around 500 reservists – from a total strength of 6,000 – will help civil authorities in major incidents.

Mr Hoon told MPs that the MoD's extra funding was to meet "the new challenges that were so vividly and tragically illustrated" on 11 September.