Philip Hammond admits the MoD needs to 'up its game' on spending

The Whitehall spending watchdog has said that major defence projects continue to be over-budget and suffer delays.

The National Audit Office found that the costs of the 16 largest defence projects had increased by nearly by £468m over the past year alone.

A new military communications system intended for Afghanistan will not be delivered before British troops leave.

Defence Secretary, Philip Hammond, insisted some progress had been made., but admitted the MoD must "up its game".