Indeed so. The Blues are not the military in general, but specifically the Royal Regiment of Horse Guards, part of the Household Cavalry, along with the Life Guards the traditional Sovereign's Escort, who guard particularly Horse Guards Parade, the Whitehall parade ground where The Colour is Trooped to celebrate the sovereign's birthday. The RHG has recently been amalgamated with another distinguished royal regiment, the Royal Horse Artillery, and is now called The Blues and Royals.

But whether the toast at the conclusion of The Keach In The Creel has any connection to this particular distinguished arm of the service is another question. I can't offhand see why it should.

≈M≈