Clash Between UK Treasury, Defense Ministry Spills Into Open

A simmering dispute between the Treasury and Ministry of Defense over a massive spending plan designed to transform Britain’s military tumbled into public view this week after it raised doubts about a £1 billion ($1.3 billion) helicopter contract.

The two Whitehall departments are locked in negotiations that officials describe as tense and painful, as they grapple with how to meet rising demands to expand the UK’s military capabilities within a tight budget. The investment plan has been delayed for months due to weekly wrangling over a multi-billion pound funding shortfall, how much money should be spent and what programs should be cut or scaled-back to make way for more urgent investments, according to people familiar with the matter.