Financial Times FT.com

UK - Politics & policy

MoD gets go-ahead to free up funds

By Alex Barker and Sylvia Pfeifer

Published: May 16 2008 00:15 | Last updated: May 16 2008 00:15

Gordon Brown has agreed to let the cash-strapped Ministry of Defence free up hundreds of millions of pounds by breaking one of its main accounting rules so it can finally give the go-ahead to a £4bn contract for two aircraft carriers.

However, in return the MoD has been forced to order a “no-holds-barred” look at other defence projects in a move that will create new uncertainty over other contracts.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this