Britain’s Armed Forces are stretched beyond their capabilities and cannot continue fighting two simultaneous wars, the Chief of the Defence Staff said yesterday.

Air Chief Marshal Sir Jock Stirrup gave a blunt warning of the challenge presented by sustaining operations in both Afghanistan and Iraq.

“We are not structured or resourced to do two of these things on this scale on an enduring basis but we have been doing it on an enduring basis for years,” Sir Jock said. “Until we get to the stage when one of them comes down to small scale, we will be stretched beyond the capabilities we have.”

Sir Jock’s comments came as the latest British fatality in Afghanistan was announced. A soldier from 2nd Battalion the Parachute Regiment was killed yesterday during a firefight with the Taleban in Helmand province. Ten soldiers have been killed in Afghanistan this month.

Speaking before news of the latest loss was announced, General Sir Richard Dannatt, the head of the Army, said that British soldiers were suffering “occasional” losses but winning the war against the Taleban.British forces were making progress and generally getting it right, he said.

Sir Jock also said that Service personnel and their families should get special access to healthcare and education. A forthcoming review of access to public services should not only create a level playing field for Armed Forces families but add a “little bit more” in recognition of their service. The intervention, following similar calls from the Conservatives, increases pressure on Des Browne, the Defence Secretary, as he finalises proposals to improve support for the military.

Sir Jock said that Service families, often required to move home, faced increased difficulty in finding NHS dentists or in getting their children into good state schools. “The families are disadvantaged by their spouses’ service,” he said, citing access to NHS dentists and GPs and education as areas of particular concern. “My objective is to see first of all that there is a level playing field for our people. But then actually from my perspective that there should be a little bit more. That actually they should be treated a little bit better because of the service they give to their country and the sacrifices they make for their country.

“There are opportunities to make life just a little bit better for our people. I don’t want to go into the details of how one might do this but there are ideas out there which are not massively expensive, which are not to the detriment of other people in society, but they are just another reflection of the country saying we recognise that you give up a lot compared to other citizens as a consequence of your spouses’ service and because of that, here is this good deal.”

Last week Liam Fox, the Shadow Defence Secretary, announced proposals to give preferential access to public services for military families. Guaranteed access to a NHS dentist and additional funding for the education of soldiers’ children were among measures proposed.

A spokeswoman for Mr Browne refused to be drawn on whether he agreed that Service personnel and their families should be given privileged access to healthcare, education and other public services over and above any compensatory measures.

“The starting point for the Service Personnel Command Paper has been to ensure that the Forces and their families should not be disadvantaged by the military lifestyle. It also aims to ensure that those who need special treatment should get it. The command paper will help secure continuity of public services for service personnel in areas like NHS treatment and access to schools.”

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