The UK is planning on cutting the budget of its Science and Technologies Facilities Council over the next few years, ending British involvement in several large scale scientific projects, including the ILC. The STFC document laying out its plans through 2012 emphasizes CERN and the LHC, and has this to say about the ILC:
We will cease investment in the International Linear Collider. We do not see a practicable path towards the realisation of this facility as currently conceived on a reasonable timescale.
In combination with recent remarks from the DOE, the current situation of the ILC proposal is not encouraging. Most likely it will require the discovery of new physics at the LHC of the sort that the ILC is the right tool to study in order to make the case for going ahead with it.
Update: More here, here, here and here. These budget cuts seem to be especially problematic for astronomy research, with particle physics not as badly affected as the UK retains its commitment to CERN and the LHC.
Update: More here. Best headline about this so far: Boffins slashed in big-science budget blunder bloodbath.