[4] In March 2015, the Secretary of State for Defence accepted the SSRO's recommendation for a 10.6% baseline profit rate for the coming year (2015/2016).

The two main changes were that there should be different rates for different types of work and that more comparison should be made with international defence contractors and less with non-defence British companies.

The Telegraph's Alan Tovey claimed sources had told him this was because Newman was frustrated by interference from the Ministry of Defence, which was allegedly preventing the SSRO from doing its job.

Clive Tucker said: "It was determined by looking at the profit rates achieved by a more international and a more appropriate range of companies than had been considered under the old 'Yellow Book' arrangements.

This new baseline profit rate now strikes the right balance between delivering a fair return for industry and ensuring value for money for the taxpayer.

The Telegraph's Alan Tovey cited sources who said that, as with Newman six months earlier, frustration with the Ministry of Defence was the reason Tucker had resigned.