Returning to the threat intention.
AFAIK, the cuts over the Royal Navy budget are derived mostly by the huge cost of the currently actives overseas operations (Irak, Afghanistan, etc...) that suffocate the budgets. While those continue, the cuts will continue. The question is that the Royal Navy has been presented with the need to renew at the same time the majority of their naval chapter, that is, has been forced in the enormous investments dedicated to the CVF Program, her part in the JSF Program, the renovation need of its nuclear submarines, the replacement of the entire fleet of her surface ships dedicated to the air defense of zone (Type 42 with Sea Dart), plus the operational costs, etc... and clearly all in a moment where the budgets for defense are reduced, and have a brutal leak of money due to the operations of the war against the terror.
Without entering the political aspects of the British intervention in Iraq and Afghanistan, the matter is not so much if the Labor Government want to reduce the RN to the minimal expression, but if that is a forced measure taken because simply there is not money enough in the budget for all.
Sadly is a theme without a fast or easy solution. Many countries were presented with this problem in the past and they opted for different solutions. The problem gentlemen is that if the budgets are not expanded, and the level of expense in the overseas interventions is maintained, the situation will continue getting worse, with more and more cuts.