PENNY Mordaunt blasted Philip Hammond for not understanding “the full value of defence to the nation” as she demanded more cash for troops.
The Defence Secretary said the Treasury has been using “flawed” analysis to dish out funding.
And she warned ministers must cough up more money for the Armed Forces in the looming spending round.
Ms Mordaunt, a Royal Navy Reservist, told the House Magazine: “I think that the Treasury has been missing a trick.
“It has not really understood the full value of defence to the nation. The methodology that it uses is flawed.
“So, in advance of the spending review I will be setting out why I think it should change its methodology towards its assessment of the return to the UK of investing in defence.”
She also called for the next PM to demand the UK can prioritise British firms when dishing out defence contracts.
The Cabinet minister said: “I have communicated to DExEU that I will be looking for some red lines in our future negotiations with the EU which previously haven’t been brought forward.
“I want to be able to have the choice about reserving our ability to build ships and other capabilities.”
And she revealed the Queen has promoted her to the rank of Commander with an honorary commission in the Royal Navy.
The MoD is facing a funding black hole of £7billion over the next decade, according to the Public Accounts Committee.
And defence chiefs have warned they are almost 10,000 men and women short of the number they need to keep Britain safe.
The next PM – expected to be Boris Johnson – will face massive pressure to turn the spending taps on for defence.
