MoD freezes all new capital spending as budgets spiral out of control

Prof Malcolm Chalmers, deputy director-general of the Royal United Services Institute, said: “The pressures on the capital budget are growing as a result of supplier inflation and the need to divert resources to pay for last year’s pay settlement. The MoD will need to be careful to avoid a deepening stop-start in its procurement relations with industry, which could increase costs over time even if it saves cash in the very short term.”