Stepping away from fossil fuels is already saving millions of taxpayer dollars in energy costs while reducing supply chain and operational vulnerability.

"We are showing defence can be an engine for growth, while also driving better value for taxpayer money."

"But the damage is already done - tax revenue equivalent to hundreds of thousands of taxpayers has already been lost."

A memo obtained through BBC's news partner CBS on Tuesday included a template email to affected employees, saying that the DEI programs "divided Americans by race, wasted taxpayer dollars, and resulted in shameful discrimination".

Chief Secretary to the Treasury Darren Jones said the government would "root out waste to ensure every penny of taxpayer's money is spent productively".