MoD accused of "complete delusion" on Royal Navy, Army and RAF capability after Russian spy ship incident

Launching the scathing broadside at Westminster, Lord Houghton of Richmond also warned that Britain’s reputation in the Nato military alliance was “at an all-time low”.

The independent crossbencher, who served as Chief of the Defence Staff from 2013-16, levelled his strongly worded criticism following the repeat of a recent ministerial statement which detailed the response to one of Russian President Vladimir Putin’s spy ships operating around UK waters.

A Royal Navy hunter-killer submarine was ordered to surface close to the Yantar after the vessel was caught loitering over critical undersea cables. On a subsequent occasion, the rules of engagement were changed to allow warships to sail closer to the craft to monitor its activities.

Giving details of the operations, Defence Secretary John Healey issued a direct message to Mr Putin that Britain “will not shy away from robust action to protect this country”. Meanwhile, ministers have declined to outline the timetable for when the Government will meet its “cast-iron commitment” to increase defence spending to 2.5 per cent of GDP.

It follows reports the target will not be met by 2030, despite pressure from US President Donald Trump, who has expressed his desire for Nato allies to go further and hit five per cent GDP spending on defence.

Referring to the Russian spy ship reaction, Lord Houghton said: “In the context of tactical action, it is not a bad tactical response… I think it aspires to be an element of strategic messaging – but, as that, it is close to hopeless. It aspires to be a strong message to Putin, to reassure the British public and to demonstrate the UK’s leadership role in Nato.

“However, it is a statement of reassurance based on a complete delusion about the true state of our military capability. In truth, it feels as if we are on a frustratingly slow-moving SDR (strategic defence review), in the context of a complete vacillation regarding funding, and at a point when – this will hurt, though I am not blaming the minister, whom I personally like, tremendously – our reputation in Nato is at an all-time low.”

He added: “We are brilliant at writing papers and we can talk wonderfully within Nato, but on the delivery of military capability, we are bottom of the league. Does the minister agree that our messaging, both domestically and internationally, will be completely without substance until we fund defence appropriately and in accordance with our international commitments?”

Responding, defence minister Lord Coaker said: “My reading of the view that other countries have of us does not entirely accord with that of his. In many respects, the Nato countries that I have met, notwithstanding the debates about capabilities, often look to the UK to see what we think about what we should do and for leadership.”

Former First Sea Lord in the Royal Navy, Lord West of Spithead, said he had warned for years that “we were reducing capabilities far too fast and not really keeping them, and that is a worry”.

Lord Coaker replied: “I take his point about capabilities. There will always be a debate about the capabilities and their development, but we are also entering the realm of the capabilities that we need.”