The UK Government is set to scrap two-year defence budgets, a move which could lead to new delays in big military contracts, the Financial Times writes.

The system – which sets out how the Ministry of Defence spends its money over two years – was introduced four years ago but has run into difficulty as the government battles with a £2bn defence equipment budget shortfall.

The proposals mean the government would revert to its former one-year budget cycle, writes the newspaper.

By staff writer