The Ministry of Defence has appointed a leading City banker to improve its poor procurement record.

The department announced on Tuesday that private finance initiative expert Nick Prior is to head up a new team in a bid get more value for money.

With it's record on purchasing equipment, infrastructure and supplies having come under intense criticism from auditors in recent years, the MoD has been forced to look outside for help.

Prior, who formerly ran the PFI unit at Sumitomo in London, will come on secondment from Partnerships UK for two years.

He denied the move was designed to appease Treasury critics but acknowledged the scale of his task.

"The Treasury certainly believe that we should improve," Prior said. "The fact that I have worked very closely with the Treasury for the past couple of years is a large part of my coming here."

Defence minister Lord Bach added: "We accept that not all our privately financed projects have run smoothly and there is considerable scope for improvement in the PFI procurement process."

"Our armed forces deserve the equipment they require to do their job effectively and taxpayers have the right to expect that the government will procure that equipment in the most cost effective manner," he added.

"This new unit will enhance the capability of the MoD to deliver privately financed programmes in an efficient and cost-effective manner."