The UK Ministry of Defence (MoD) is likely to go ahead with another round of cuts in the next financial year to reduce spending by the country’s armed forces.

“We have made it clear that while the strategic defence and security review had made substantial inroads into the £38bn funding deficit, there is still more to be done,” an MoD spokesman said.

A three-month study being conducted by the MoD will assess the affordability of past spending assumptions and will also consider possible cuts in personnel and equipment programmes.

The potential targets could include the UK’s last surviving aircraft carrier HMS Illustrious, currently undergoing a refit programme, as well as plans for a new fleet of armoured vehicles, according to BBC News.

The UK Government’s strategic defence and security review, announced last October, outlined the future shape and size of its armed forces and a fall in defence spending by 8% over four years.