Defence budget deficit eliminated

The Defence Secretary yesterday told the House of Commons that the Government had balanced the books as he admitted “tough decisions” were required to fill the gap.

However he refused to release specific details of costings, citing national security and commercial sensitivities.

Despite now having £8b headroom in the overall 10-year defence programme and a £4b centrally-held contingency fund, Mr Hammond said planned redundancies in the armed forces would still go ahead.

In a statement to the Commons, Mr Hammond said there had been a “woeful” lack of spending restraint in the Ministry of Defence in the past.

He insisted he had been assured the “prize for good behaviour” now would not be a “Treasury raid” on the department’s budget.