The head of the Navy has delivered a warning about the future cost of running the senior service.
First Sea Lord Admiral Sir Jonathon Band reportedly said that without adequate funding the country risked falling out of the top division of sea-faring nations and "turning into Belgium".
In a statement issued later Sir Jonathon insisted he was not criticising present funding levels. But the Tories seized on the comments, made at a lunch with journalists, as evidence that Chancellor Gordon Brown was refusing to provide much-needed cash for the armed forces.
Shadow defence minister Julian Lewis said: "The fact that the First Sea Lord feels it necessary to speak out in this forthright way confirms everything we have said about the destruction of the frontline strength of the fleet.
"The 1998 Strategic Defence Review committed the Government to 32 frigates and destroyers. We are now down to 25, with possibly six more to be lost despite the fact we have since embarked on two major military campaigns.
"The Armed Forces are overstretched as never before, whilst Tony Blair increases commitments, Gordon Brown again refuses to provide the resources necessary."
The Admiral said in his statement: "I do not think, and have not said, that the Royal Navy needs £1 billion-a-year extra to do its job or to keep ships at sea. Today's Royal Navy is funded to do what is asked of it, not least thanks to a current investment programme of £14 billion and the delivery of 28 new ships in the last decade alone.
"As the Prime Minister has said, if we as a nation are to extend what our armed forces can do, the public needs to feel comfortable with the economic choices needed to make that happen.
"I welcome the way the Prime Minister has started this debate, as I welcome the Government's commitment to the new aircraft carriers. My comments have been aimed at informing this public debate about the long-term funding of our armed forces, nothing more."
Tony Blair said last month that Britain must maintain its status as a major defence power, with military might essential to winning the war on terror.
