Healey criticises waste in the MOD saying his reform is biggest shake-up in 50 years

Defence Secretary John Healey has criticised waste and bureaucracy in the MOD and says his programme of reform is the "biggest defence shake-up in 50 years".

Speaking at the Institute for Government (IfG), the cabinet minister said Britain needs to re-arm if it is to handle pressures from hostile states and he spoke of his frustration at the many processes and procedures in defence.

"Defence is mired in process and procedure. We've added complexity where simplicity is needed.

• Armed Forces seeking new 5.56mm lightweight machine gun for dismounted troops
• Foxhound can resist IEDs and mines - but not planned date to leave Army service
• From foster care to flagship: Navy chef nominated for national youth award

"In procurement, we've got a situation where we employ 11 checkers for every one decision-maker, so no wonder it takes on average six years for a large programme simply to get onto contract," he told delegates.

The Defence Secretary then told those in attendance there are "extraordinary people doing extraordinary things within a system that very often doesn't work in the way that we need it to", and that in an "increasingly dangerous world", ministers need to provide the Armed Forces with "what they need to deter, to fight and to win".

His speech highlighted plans already announced to give the Chief of the Defence Staff (CDS) more powers, as part of a quad of four senior leaders – the CDS now commands the service chiefs for the first time.

Mr Healey said budgets will be split into three areas from the end of March.

There will be a Readiness Budget overseen by the Chief of the Defence Staff, an Operations Budget run by the new Military Strategic Headquarters and an Investment Budget under a new National Armaments Director who will have a specific mandate.

Mr Healey explained: "So sitting alongside the Permanent Secretary, the Chief of Defence Staff, they will execute a £20bn-plus budget to build and sustain our national arms arsenal because, at this time, we must rearm Britain, and I see this as a new FTSE 100 company within the MOD tasked, if you like, with getting the very best capabilities needed into the hands of our frontline forces."

The Defence Secretary also said that both defence and the world is changing and that his reform programme represents the biggest shake-up of defence in 50 years, a bold claim that will be scrutinised over the coming months and years, although it's not clear when any tangible results will materialise.

He ended his address by saying Labour's "commitment to defence is unshakeable".