The taxpayer is picking up a �41m annual bill for homes provided for members of the armed forces which are standing empty.

A report published by the Commons Public Accounts Committee (PAC) has condemned the number of vacant properties as unacceptably high.

The PAC, chaired by the Conservative leadership candidate David Davis, criticises the MoD's record on reducing the number of empty properties provided for the use of armed forces personnel.

The public is also paying �60m a year for houses provided for MoD personnel that have been demolished.

In cases where the MoD still has an interest in the site, the payments are due for up to 25 years after demolition under an agreement with the company which owns the bulk of the estate.

Rising costs

The committee has asked the MoD to report back every three months on the progress it has made in reducing the number of vacant quarters.

"This level of vacancies is unacceptably high and represents a significant drain on resources, costing some �41 million a year in rent and maintenance," the report said.

An MoD spokesman said its housing executive was proving successful in disposing of its properties.

He said the MoD got rid of 6,000 homes between January last year and March this year.

However, the report says: "Vacant houses cost the taxpayer money whether or not they are planned or for disposal, awaiting upgrade or are simply surplus to requirements."