MINISTERS must find the money for planned weapons programmes or risk Britain losing the industrial capability necessary to defend itself, according to Mike Turner, the outgoing chief executive of BAE Systems, the UK’s biggest defence group.

Turner’s comments, in an exclusive interview with The Sunday Times ahead of the company’s annual results this week, come as the MoD struggles to resolve a £1.5 billion budget crisis that threatens several big defence programmes that will employ thousands.

At risk of delay, or being scaled back or even cancelled, are two aircraft carriers for the Royal Navy, the third set of Eurofighter Typhoons for the RAF, and a multi-billion-pound order for new armoured vehicles. The Defence Management Board, the highest nonministerial committee at the MoD, meets on Wednesday.

Turner said the budget was “a major problem”.

“That is the danger. If you want to keep a defence industrial base, and operational sovereignty in the UK, then you are going to have to fund it, and research and development. If you don’t do that, you are dead.” Turner, who leaves BAE in August after six years in the top job, said that while there was “a chance” one major project would be cancelled, delays were more likely.

“They will do what they have always done and push them to the right. It costs more in the long term, but it’s the way it happens.”

Turner defended BAE’s business in Saudi Arabia – in the spotlight last week after a challenge by anti-arms-trade campaigners to a decision by the Serious Fraud Office to drop an investigation into alleged bribery. “We have done nothing illegal. I know we have done nothing illegal,” he said.

He also revealed BAE was negotiating a wide-reaching arrangement to build up Saudi Arabia’s defence industry.

Meanwhile, rebel shareholders suing BAE over bribery allegations have won an extension to a court order that in effect freezes the American property assets of Prince Bandar Bin Sultan. The lawsuit centres on allegations that BAE paid more than £1 billion in bribes to Saudi officials, including Bandar, as part of an agreement to supply military equipment to Saudi Arabia.

Bandar has consistently denied the allegations. BAE has strongly denied making illegal payments.

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