Battle over military funds

A little-noticed change, announced without fanfare by Mr Browne earlier this month means that the Ministry of Defence will have to cover half the cost of "urgent operational requirements" above a fixed figure agreed with the Treasury.

The MoD has confirmed that discussions are ongoing with the Treasury about the level above which the payments would be triggered.

But a spokesman insisted that the change would not affect the MoD's ability to deliver equipment needed in the front-line. And he said that an additional £200 million awarded to the MoD by Chancellor Alistair Darling in his Comprehensive Spending Review would ensure the change was "cost-neutral" to the Ministry.

Revelations about the discussions on funding for the military came after five former chiefs of defence staff delivered a tongue-lashing to Prime Minister Gordon Brown in the House of Lords over his handling of the armed forces.

The former chiefs lined up on Thursday to complain that the decision to make Mr Browne Scotland Secretary as well Defence Secretary was an "insult" to the forces, with Admiral Lord Boyce saying forces felt "let down" by Prime Minister Mr Brown.

"When you have got people who have been killed and maimed in the service of their Government, and you put at the head of the shop someone who is part-time, that sends a very bad message," he said.

"And that is the message I get back from our soldiers, our sailors and our airmen - they feel insulted, they feel that he is treating them with contempt."

Conservative leader David Cameron backed the retired commanders: "At a time when our forces are engaged in two highly dangerous missions in Iraq and Afghanistan, the need for the Defence Secretary to be able to concentrate full-time on his role is surely a matter of plain common sense."

But Mr Browne insisted that he was fully committed to his job as Defence Secretary, saying: "I would put my record both in relation to commitment and delivery up against anyone's."