Armed Forces 'Will Have The Funding They Need'
Britain's military will have the funding it needs to continue to defend the country appropriately, Philip Hammond has said, amid calls for extra cash.
The Chancellor said he is working "very closely" with Theresa May and Defence Secretary Gavin Williamson as the latest review is carried out.
He faced MPs just hours after defence minister Tobias Ellwood warned that spending the NATO target of 2% of GDP on defence was "just not enough" if the UK wanted to continue playing an influential role post-Brexit".
Mr Ellwood highlighted concerns over a potential training backlog and the "financial pressure" the equipment programme was under, while also stressing a strong economy "cannot be guaranteed" without strong defence.

Speaking in Treasury questions, Conservative MP and former soldier Johnny Mercer (Plymouth Moor View) asked:
"While accepting the (Ministry of Defence) is in need of serious reform as well as more money, can the Chancellor confirm that he has agreed with (Defence Secretary Gavin Williamson) that there will be no further reductions in capability while the modernising defence review takes place, and the money required to do that - in the region of £2 billion - will be forthcoming?"
Mr Hammond said he understood how "complex and challenging" managing the defence budget was, given his previous experience as defence secretary. He added:
"The Prime Minister and myself are working very closely with (Mr Williamson) as he carries out the modernisation review and we will ensure defence has the funding it needs to continue to defend this country appropriately."