Pressure has built on Geoff Hoon following a hard-hitting report which found that British troops were ill-equipped for the Iraq war.

The National Audit Office said the logistics exercise failed British forces in Iraq - with a lack of protective suits leaving them vulnerable to a chemical attack.

Hoon yesterday admitted to errors when he set out plans for a dramatic overhaul of Britain's armed forces.

Whilst he delayed announcing which regiments will be merged or disbanded, Hoon said the structure of each of the armed services would also "need to evolve to optimise joint operations".

He said Britain's defence interests lay in moving away from heavy armour to lighter and more mobile forces supported by better intelligence and new technology.

Today's Telegraph, however, suggests the forces are set to face "hidden" cuts as a result of the shake-up.