Come to think of it, why do you guys need a large military? Here's a scenario: Privately, Her Majesty's Government, whatever they say in public, is commited to the EU. When Germany decides that the only way out of the Euro crisis is a political union, there will be a new European Defence Force, headquartered in ... mmm, the Bendlerblock is still standing in Berlin.
National forces will cease to exist. On the up side, you won't have to join any US adventures into, say, Iran or North Korea. You can get rid of your nuclear subs, and axe the aircraft carriers ... save a whole bunch of money! Make a deal with the Argentinians for the Malvinas. Maybe they will throw in Lionel Messi.
A great footballer is, in today's world at least, worth much more than honour, and you could always work out a deal on sharing any oil that may be there. It will really be peace in our time.