DAVID Cameron has been accused of a "grubby, political fix" to save Scottish army units at the expense of English ones because he feared a backlash in the independence referendum campaign.

Downing Street denied Tory MP John Baron's claim as the UK Government took flak for announcing the loss of 17 major units, including famous names like the Green Howards, in the largest overhaul of the British Army for decades.

The 465-strong Argyll and Sutherland Highlanders will be "re-roled" into a public duties company of around 150 men, engaged in ceremonial and sentry duties at Edinburgh Castle, Holyroodhouse and Balmoral, as The Herald reported yesterday.

Defence Secretary Philip Hammond told MPs yesterday a £38 billion black hole left by the previous Labour government left difficult decisions, but the proposed changes would create a "balanced, capable and adaptable force" for the future.

The changes had been "carefully structured," he insisted, "to minimise the impact of the regular manpower reduction and maximise the military effectiveness of the Army".

Jim Murphy, his Labour Shadow, said creating "the smallest Army since the Boer War is an entirely inadequate response" and "may mean we couldn't make large, long-term deployments even if we wished to".

Overall, the regular Army will be cut from 102,000 to 82,000 by 2020 but with an enhanced role for reserve forces, which will double in size to 30,000.

The Ministry of Defence made clear the remaining 300 or so men from the Argyll and Sutherland Highlanders would be redeployed into other battalions of the Scottish regiment.

Some could face redundancy but this would not be linked to the structural changes announced yesterday, it was stressed, but rather to the ongoing redundancy process.

Mr Hammond made clear that in coming up with its proposals, the Army was "sensitive" to the interests of the nations and regions of the UK.

Mr Baron, who represents Basildon and Billericay and served with the Royal Regiment of Fusiliers, told MPs: "The decision to axe the better-recruited English battalions at the expense of the more poorly-recruited Scottish battalions smacks of a grubby, political fix given the advent of the Scottish referendum."

Mr Hammond denied the Royal Regiment of Fusiliers – which is to lose its 2nd Battalion – was "one of the best-recruited regiments", adding: "If we look at this over a 10-year period, the demographics going forward, the conclusions are clear."

The Prime Minister's spokesman insisted the process had involved extensive consultations. He added that while it had been led by the Army, the final say was Mr Cameron's.

Tory MP Bob Stewart, a former Army colonel, said some English regiments were subject to "savage" cuts compared to those affecting Scottish units.

Angus Robertson, the SNP Defence spokesman, said the UK Government had already acknowledged that Scotland had received disproportionate cuts in defence personnel numbers and the new arrangements meant these would continue.