Major reform to improve troops' equipment

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A 'one-stop-shop' body is being created to oversee buying, distributing, maintaining and disposing of old equipment.

Defence minister Lord Drayson said his "primary concern" was that UK armed forces should have the tools they need "to do the job asked of them".

"The creation of this new organisation, combining the best of military and public service cultures with a hard commercial edge, shows our determination to continually improve the support we deliver to the front line.

"Both Ministry of Defence and industry are making real progress in improving acquisition performance but much remains to be done," he added.

The Defence Equipment and Support (DE&S) organisation will manage a budget of £16bn - 43 per cent of the overall defence spend - and employ around 29,000 people internationally.

It will be based in the Bristol and Bath area.

Prime Minister Tony Blair has accepted there is "anger" among soldiers about faulty equipment and vehicles.

The Defence Select Committee also expressed concern about shortages in December, and criticised procurement errors.