National Secretary Steve Jary said: “Prospect has long warned that inter-service rivalry and the dominant position of military decision makers has helped create the present crisis in defence funding.

“The new structure looks more fit for purpose than the existing tangle of vested interests and historical legacies.”

However, Jary warned that the department faces huge challenges in its attempts to get to grips with its structural problems.

“The kind of culture change Lord Levene recommends is likely to take a long time to work through the department. Senior military officials owe their positions to the old structures and are unlikely to give them up without a struggle.

“It is notable that Levene identifies the high level of commitment of civilian staff as a particular strength of MOD. This loyalty is evaporating quickly as a result of the vilification staff have been subjected to over the last few years and the irrational decision to cut 1 in 3 jobs.

“Many staff have had enough:1 in 5 have already said they want out – with MOD facing 14,000 applications for early release this year alone. The department risks losing its in-house expertise, just as it is required to deliver defence reform.”