Kent's Gurkhas could be facing a fresh fight for their survival today after an MP claimed they're set to be axed.

Tory MP Patrick Mercer, a former army officer, reportedly claimed the government is planning to disband one of the Army's oldest regiments.

Chancellor George Osborne has ordered the Ministry of Defence to make cuts of between 10 and 20 per cent of its £36.9 billion budget.

And it's feared this could spell the end of operations for the 1st Battalion Royal Gurkha Rifles based in Folkestone.

However, the MoD has dismissed the claims as "speculation" and "entirely unfounded".

The Nepalese soldiers have been part of the Army for nearly 200 years.

Peter Carroll, of the Gurkha Justice Campaign, said: "My first reaction is one of dismay, I just hope the reports are not true.

"My view is this: you don't throw out a working relationship worth nearly 200 years with these fantastic soldiers from Nepal just because we're in a short term financial mess caused by selfish bankers in the City of London and a government that couldn't keep the books.

"I think everybody knows that sometimes in life, even when you're trying to save money, you have to decide what's really of value and make your decisions accordingly, and to give this up at this time I think would be incredibly short term and a very bad move.

"I have heard this bubbling away in the background on previous defence reviews. I suspect it's more serious this time because the financial crisis we're in is ever greater.

"There are some Members of Parliament making public announcement that part of the reason why the Gurkhas are facing the possible axe is because of the campaign we fought with Joanna Lumley to allow them to come and live here when they retired from the army, and that is absolutely spurious, that is absolute nonsense.

"The campaign victory that made the Government decide Gurkhas could come and live here has very little impact on the actual running costs of the serving Gurkhas.

"If you look at all the other measures about where will they stick the training, if a hundred Gurkhas start nearly every single one of them will get through that training because they're so committed to serving the British Army.

"They're incredible value for money, if you have to look at it in value for money.

"But it's bigger than that, it's about their valour and their loyalty and their service, and not just the people who serve now but those who've served in generations past.

"I think the British public will look at the government if they do this and say 'that's a very bad decision based on very bad values'."

A spokesman for the MoD said: "The Defence Secretary has made clear that tough decisions will need to be made but the complex process of a Strategic Defence and Security Review will be concluded in the autumn.

"Speculation at this stage about its outcome is entirely unfounded."