The former head of the Royal Navy says underfunding of the military, coupled with issues following Brexit, will create a “huge black hole” in the MoD budget.
Admiral Lord West told the BBC’s World At One there wasn’t enough money in the defence budget to do “all the things we are wanting to do” before the vote to leave the EU.
He said the changes in the economic climate following the move have led to further funding problems: “When you add to that the fact we are ordering from America and therefore the money completely leaves this country at an exchange rate that is much worse than it was. I think it’s a perfect storm.”
“I fear that actually we are going to see another squeeze and we live in a very dangerous world and I find that very worrying.”
It comes after defence experts warned the Ministry of Defence is facing extra costs of £700 million a year after the fall in the value of the pound against the dollar.
The Royal United Services Institute think tank said the UK paid the US around $10 billion a year for defence products including nine P8 maritime patrol aircraft, 138 F-35B aircrafts and 50 Apache aircraft.
The UK has committed to spending 2% of GDP on defence but the chairman of the House of Commons Select Committee, Julian Lewis, believes that figure “should be more like 3%”.
The news comes on the same day The Times obtained a document from the British Army which claimed Russia could outgun British troops if there was a conflict between the countries.