The UK military is to receive an extra £4bn a year over the next four years – in its biggest spending boost in three decades.
The government has said it will invest the funds to launch space and cyber defence projects such as an artificial intelligence agency. This could create 40,000 new jobs.
Defence Secretary Ben Wallace said “letting go” of older weapons would create “headroom to invest”.
Wallace told BBC Breakfast: “When I looked across at the armed forces today I saw them with equipment that was out-of-date, I saw our adversaries across the world having better equipment, the ability to attack us and harm us getting wider and wider from our capabilities.
“And when that happens, time runs out and you need to modernise your forces. You need to sometimes let go of some older capabilities and that takes money in order to first of all create the headroom to invest.”