The UK Government has come under fire following reports of a £160million reduction in funding for the RAF's next-generation fighter programme, Tempest.
The Ministry of Defence confirmed that £1.3billion will be spent on the project this year, down from the expected £1.46billion.
The decision has sparked controversy, with opposition figures accusing the Government of cutting defence spending at a time of heightened global threats.
Tory Shadow Defence Secretary James Cartlidge criticised the move, stating it "sends entirely the wrong message to our adversaries".
The UK government has come under fire following reports of a £160m reduction in funding for the RAF's next-generation fighter programme, TempestPAHowever, the MoD has refuted claims of budget cuts, insisting that the revised forecast was the result of joint planning with the defence industry.
An MoD spokesman said: "These claims are false - the revised forecast was the result of joint MoD-industry planning."
The spokesman highlighted that "positive progress continues developing a future fighter jet, due to take to the skies by 2035".
The funding reduction was revealed in a written parliamentary answer by Armed Forces Minister Luke Pollard.
He stated that the forecast was reduced "due to revised estimates of programme activity from industry throughout the year".
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However, sources told The Telegraph that the reduction resulted from ministers failing to sign off on the full £1.46billion budget, rather than industry underspend.
The MoD insisted that a one-year underspend is common for a project of this size and does not affect the project's overall long-term budget.
The Tempest project, officially known as the Global Combat Air Programme (GCAP), is a joint venture between the UK, Italy and Japan, aiming to develop a new stealth fighter jet to replace Britain's current fleet of Eurofighter Typhoons by the mid-2030s.
Cartlidge expressed strong concerns about the funding reduction, warning: "With the threats we face - from Russia's continued aggression, to Iran and its proxies in the Middle East - we should be urgently boosting defence spending, not cutting it."
The Tempest project, officially known as the Global Combat Air Programme (GCAP), is a joint venture between the UK, Italy and Japan, aiming to develop a new stealth fighter jet to replace Britain's current fleet of Eurofighter Typhoons by the mid-2030s
PA
He argued that cutting a key capability like GCAP is detrimental to jobs and businesses across the UK.
The Shadow Defence Secretary called on the Government to "urgently avoid further cuts by setting a clear path to 2.5 per cent [of GDP for defence spending] in the Budget later this month."
However, it is not expected that there will be additional funds for defence in the upcoming Budget, as Chancellor Rachel Reeves grapples with filling a reported £22billion financial deficit.