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Considering that the UK is only operating 227 tanks at this point, an upgrade seems the most cost effective measure.  Toss an L55 smoothbore 120mm gun into the Challenger 2 and maybe a 1500 HP engine.  Add in a new electronics package and that should get it up to snuff?

 

Edit:  Here is a weird random thought.  The UK Army currently operates fewer MBTs than the total number of tanks they lost during operation Goodwood.  

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Considering that the UK is only operating 227 tanks at this point, an upgrade seems the most cost effective measure.  Toss an L55 smoothbore 120mm gun into the Challenger 2 and maybe a 1500 HP engine.  Add in a new electronics package and that should get it up to snuff?

 

Edit:  Here is a weird random thought.  The UK Army currently operates fewer MBTs than the total number of tanks they lost during operation Goodwood.  

 

Didn't they run into some issues finding space to store single piece 120mm ammo without making drastic changes to the turret? Which is one of the reasons why they suspended the smoothbore upgrade.

 

Still they did get 1500 hp MTU-883 V-12 in the Challenger 2E

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