True, my respect for Brits is pretty high. However what will they fight with? The key in Western-style warfare is paramount quality over mere quantity. If Britain cannot afford to have cutting edge, and be able to project that cutting edge efficacy where it is needed, then how powerful would it be?
Look at Canada. Those guys cannot even afford to fix their Sea Kings, and when transporting their military equipment they had to hire a Russian transport and pay German mercenaries to guard their troops until the equipment came through. Yet the Canadians were brave (i know some will scoff at the brave part, but hey, the guys did support us is Afghanistan). Basically Britain is headed the same way unless urgent measures are taken. Although it can be argued nothing can be done about it ....their economy has too many riders attached to it.