The Ministry of Defence (MoD) has announced plans to reduce its equipment procurement budget by as much as £1.5 billion.

The cuts announced by the Financial Times would account for 20 per cent of the MoD’s £7.5 billion annual spend.

Much of the MoD’s procurement arm budget is spent on servicing equipment, with the multinational defence companies taking much of the work. The budget reduction has led to military chiefs urging caution at the extent of cuts and on their impact on the UK’s military capability.

The cuts will likely take a number of years to come into effect, with existing contracts needing to expire before the planned cuts can take place.

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