The former spy chief says the Government should axe planned tax cuts and instead increase spending on defence.

Baroness Neville-Jones served as security and counter-terrorism minister under Lord Cameron until 2011. She was also chairman of the Joint Intelligence Committee, the government body that oversees the security services, GCHQ and defence intelligence

Speaking to Times Radio, Neville-Jones has now said she wants to see around 2.5 percent of Gross Domestic Product (GDP) spent on defence funding.

That would be up from the 2.27 percent currently allocated to defence.

It comes as Neville-Jones warns "threats are growing". She said: "I think, yes, we do have to increase, up our level of defence and security expenditure.

"I think it all depends on how high a priority you regard the security and defence of the nation as being. And I think it's undeniable that it's mounting that ladder. And we may have to alter our priorities and spend more on defence."

She suggested the public would back the increase in spending, even if it came at the expense of the long-awaited tax cuts, reports The Telegraph.

Neville-Jones' comments come at a time when the Government is facing increased pressure to increase its defence spending. No additional money was put aside for defence during the budget last month.

Armed Forces minister James Heappey quit during the row, saying "both main parties should strongly consider a further increase in defence spending in the next parliament".

While Defence Secretary Grant Shapps said "about three percent" should be put aside for the defence budget. He told The Telegraph: "Defence is the best way to protect ourselves against a military conflict, you have to show your adversaries, so I am clearly in favour."

Former immigration minister Robert Jenrick called for a 50 percent cut in foreign aid to help increase defence funding.