The Treasury rebuffed the head of the Army yesterday after his unprecedented public cry for higher wages for all Service personnel. It said that there was no extra money in the coffers.

General Sir Richard Dannatt gave voice to frustrations in the Forces by comparing military pay levels unfavourably with what a traffic warden earns. Gordon Brown, sensitive to unrest in the ranks, responded swiftly to say that he recognised the contribution of the Armed Services. But the Treasury said that there was no question of more money in the short term because the Ministry of Defence's budget was fixed for three years.

It was clear, however, that General Dannatt, the Chief of the General Staff, was trying to put down a marker for future years. He believes that for what the military have to do — fight in Afghanistan and Iraq and be separated from their families for long periods — his soldiers and members of the other Services deserve better.

His comparison of a soldier's basic wage — £13,013 before being fully trained, rising to £16,227 after completing the 26-week course — with that of a traffic warden (£17,000) irritated some in the Ministry of Defence.

Officials pointed out that there were, in addition, a number of allowances that boosted the average soldier's income significantly, something to which a traffic warden would not be entitled.

The allowances include an operational bonus for serving in Iraq or Afghanistan for six months (£2,380), a “longer separation allowance” (£1,132) and special financial incentives for staying on in the Services.

Nevertheless, General Dannatt's remarks about pay and his suggestion that the country should start considering whether to spend more on defence hit a nerve yesterday.

Choosing to articulate his views in The Sun, the general demonstrated yet again that he has a canny eye for publicity, and even though MoD officials were quick to point out that he was not the only one who would like more money for defence, his comments reminded everyone in Whitehall, especially the Treasury and Downing Street, that the head of one of the Armed Forces has a unique ability to rattle the cage, provided he does not do it too often.

General Dannatt told the newspaper: “I think given the insecurity in the world today and what the Armed Forces are being asked to do, then probably a slightly increased share of the national wealth going to defence would be appropriate.”

General Dannatt has past form. In October 2006, during an interview with the Mail on Sunday, he said there was a danger that the presence of British troops in Basra would make matters worse and that they should be brought home “sometime soon”.

There are still 4,000 troops in Iraq, but Gordon Brown has made it clear that he wants to reduce that figure to 2,500 when he can. Round one to General Dannatt.

Now, in round two, he has voiced his strongly held opinion that his soldiers are not paid enough. “You look to see how much a traffic warden is paid and compare that against what a private soldier gets paid. [And] if you compare a police constable on overtime, I think you will find that an individual serviceman gets quite a lot less,” he said in the interview.

A police constable is paid between £21,009 and £32,985, excluding overtime. “I am pleased that we had above-inflation pay rises over the last couple of years and I think this year's pay rise which reflected an increase in the ‘X- factor' [danger and disturbance money] was appropriate. [But] I would like to see it going up above inflation for the next couple of years,” he said.

As one defence official said: “It sounds like he's trying to send a message to the Armed Forces' Pay Review Body [which assesses pay scales each year and makes recommendations].”

The pay rises for the most junior ranks have actually been generous in recent years. Last year they were awarded a 9.4 per cent increase, and this year Service personnel were given 2.6per cent across the board plus an extra 1 per cent for the X-factor. In 2006 the most junior ranks were given 3.3 per cent.

Despite the increases, however, the Army has failed to meet its manpower target of 101,800 and is suffering a shortfall of about 3,500 trained soldiers. Young recruits do not tend to join the Army in the hope of making a fortune. But it is recognised that in a market where all employers are competing for the best, a good opening salary must be an inducement.

The Prime Minister reacted quickly to General Dannatt's demands. “I recognise the huge contribution that our Armed Forces make to the security of the country and we will continue to try to reward [them] for the dedication and commitment they show,” Mr Brown said.

Patrick Mercer, Conservative MP for Newark and the former commanding officer of an infantry regiment, said: “An internal army report recently said that some soldiers were living close to the official poverty line, so it's not surprising General Dannatt has spoken out. It's right that Service personnel should be given proper recompense for what they do on behalf of the nation.”

The internal report was written, as it happens, by General Dannatt himself. But the MoD has cast doubt on the “poverty line” claim, saying that the definition of poverty is less than £200 a week. “I don't think there can be many soldiers on that sort of money,” one official said.

The MoD wages bill is more than £7 billion, and with the defence budget facing unprecedented pressure from rising equipment costs no one seemed optimistic that General Dannatt's demand for much better pay would be met. Round two to the Treasury.

Explore UK News

• Crime News

• Education News

• Health News

• Scotland News

Times Recommends

• 5 Christmas romance confessions
• Has champagne lost its sparkle?
• Your tailor-made Christmas