Vital soldier training was nearly axed by Whitehall

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A £25 million contract to simulate battle conditions was almost shelved because the Treasury allegedly refused to pay the full cost.

It was hastily reinstated after General Sir Richard Dannatt, the Chief of the General Staff, complained about under-resourcing of the war in Afghanistan. His protest brought assurances from Gordon Brown and Chancellor Alistair Darling that no request made by the Army had been refused.

The training programme involved the use of lasers to improve rifle accuracy in an environment designed to simulate battlefield conditions.

The Government has pledged to pay all Urgent Operational Requirements without question. However, the Treasury argued that the training would give the MoD a long-term benefit and that therefore half the costs should be met from the existing MoD budget, implying cutbacks elsewhere.

Once Sir Richard had spoken out, however, the Treasury backed down in case it was seen to be refusing an operational necessity, reported the Times.

An MoD spokesman said the delay was part of a routine discussion and did not deny that the Treasury had attempted to offload some of the costs. A Treasury spokesman said: "This is a matter for the MoD."