Defence Secretary John Healey has been accused of “failing to deny £2.6 billion of cuts” to defence by the Conservatives.
Tory frontbencher David Reed told MPs that “multiple media outlets” have suggested that the Ministry of Defence (MoD) will be asked to make cuts of that size this financial year.
It comes after reports in October that defence chiefs were projected to overspend on their budget by £2.6 billion unless they make drastic cuts, according to a leaked document seen by the Telegraph.
Mr Reed said: “We all know that the Government cannot deliver a strong defence industrial base without seriously boosting defence spending.
“And yet, multiple media outlets have very recently reported that his department is asking the MoD to make cuts of £2.6 billion this financial year.
“So, very simply, can he tell us what will be cut to find the money?”
Responding, Defence Secretary John Healey declined to comment on any potential cuts.
He said: “Quite simply, we have boosted defence investment. We’ve done so by a record amount since the end of the Cold War. We’ve done so three years earlier than their unfunded plans in the first place.
“Since the election, we’ve signed over a thousand major contracts, 84% of those with British firms, we’ve brought in £1.7 billion in foreign direct investment into defence, and we’ve won major export deals that they never managed.
“I signed on Monday, with the Prime Minister, an £8 billion deal with Turkey to buy 20 British Typhoons that will help secure 20,000 jobs in the wider supply chain for the years to come. I’d like to hear them welcome that.”
Later, shadow defence secretary James Cartlidge called out Mr Healey on not answering the question about potential cuts.
He urged the Government to scrap its Chagos deal to spend “every penny” on the “uncrewed revolution” in the Armed Forces, including drones.
Mr Cartlidge said: “By their own written answer, the Government said they only ordered three drones for the British Armed Forces in their first financial year.
“So at June’s defence oral questions, I suggested where Labour could find the money to buy drones at the scale we need by scrapping their crazy Chagos deal.
“Now, they rejected my proposal then, but given that the Defence Secretary has just failed to deny £2.6 billion of cuts at the MoD this year, isn’t it even more urgent that they scrap their crazy £35 billion surrender and spend every penny on the uncrewed revolution for our own Armed Forces?”
Responding, veterans minister Al Carns said: “The irony. They started this deal. They processed the deal. Labour came into government, and we finished it, and we put it into place, supported by our allies, both the US and multiple others.
“Not only did we finish that deal, we started and finished an India deal, a US deal, Europe deal, a typhoon deal, a Norway deal, and a Germany deal.”
Elsewhere, Defence Committee chairman Tanmanjeet Singh Desi suggested the Government should “relax” its fiscal rules to “meet the moment”.
The Labour MP for Slough said: “Our German friends, renowned for their fiscal prudence, have relaxed their fiscal rules just for the defence department.
“So in the run-up to the Budget, what discussions has the Defence Secretary had with the Chancellor to relax fiscal rules just for the Ministry of Defence in order to meet the moment?”
Defence Secretary Mr Healey replied: “We have the increase in budget this year. We have the increase in the budget over the Parliament. Our job now is to ensure that we can deliver value for money for that increased investment, and use that increased investment to drive economic growth across the UK.
“And it’s because of that increased investment we’ve been able to announce and launch our defence housing strategy today.”
