MILITARY projects will have to be cut or cancelled due to pressures on public finances, the Defence Secretary has warned.
Major programmes such as the Tempest jet and landmark submarine tie up with the US and Australia could be at risk due to the squeeze.
Defence Secretary John Healey said his Whitehall department will “do our part” as Labour say they need to fill a £22billion black hole.
The Tories say they left the economy in a healthy state and accuse Labour of laying the groundwork for tax hikes at the Budget.
When probed on whether big defence projects could be cut, he said: “Across government we’re now all dealing with public finances this year that are far worse than we or anyone else thought before the election.
“This is probably the worst inheritance of any government in living memory so that’s why both the Prime Minister and Chancellor have talked about tough choices which we will make.”
Pushed on whether cuts would be made in his department, Mr Healey said: “Including on defence… we have to get a grip of the public finances, we have to see growth back in the economy, and that’s the way that we can rebuild both the wealth of this country as well as the public services.”
He told the BBC: “We will do our part to help this government deal with the deficit this year and the dreadful state of the public finances.”
Labour has already set up a review of the country’s armed forces with a “roadmap” to hitting 2.5 per cent of GDP on defence to be spelled out.
