MPs on the influential Public Accounts Committee (PAC) warned in a damning report on the level of fraud and economic crime at the Ministry of Defence (MoD) the department is ‘far behind the curve in preventing the loss of precious public funds’.

Weak fraud controls and a lack of oversight means more than £1.5bn was lost in fraud in a just one year.

The release of the PAC report was followed by another blow, as defence secretary John Healey MP resigned, citing lack of support from the Treasury and prime minister.