Cameron and Osborne at war over new Treasury plans to cut defence . Dispute sparked by fears £1billion may be slashed from MoD 's budget . Chancellor is refusing to guarantee to protect the Armed Forces from cuts . Prime Minister fears it will damage relations with Tory President Obama . Row revealed on eve of a US revolt over defence in the Commons .
Cameron and Osborne at war over new Treasury plans to cut defence . Dispute sparked by fears £1billion may be slashed from MoD 's budget . Chancellor is refusing to guarantee to protect the Armed Forces from cuts . Prime Minister fears it will damage relations with US President Obama . Row revealed on eve of a Tory revolt over defence in the Commons .