He said in a statement to Parliament: “Modernising defence will allow us to deliver better military capability and value for money in a sustainable and affordable way, and it will allow us to ensure that defence capabilities complement other national security capabilities in the most effective way.”
This programme will be based on identification of further efficiencies and productivity in the MoD and ways to improve its performance on commercial and industrial issues.
The department was criticised by MPs over its efficiency and procurement in December.
Williamson said the review would also try to establish “the ever-changing threats that this country faces” and how to react to them.
He noted the UK had the world’s fifth highest defence budget at £36bn and that this would reach almost £40bn by 2021.
“The UK remains one of the few countries to exceed NATO’s 2% spending target, and this government have committed to continue to increase the defence budget by at least 0.5% above inflation every year,” Williamson said.