Cameron admits sacking pay adviser but disputes motive However, the Prime Minister insisted that he had not removed Prof Smith because of his latest pay report. He said: "The problem I have with the story in the Telegraph is that it is factually I'm afraid incorrect because the decision that I was advised over and made which was to say to the individual concerned after their term was up that they had done a good job, but the term was completed, that decision was made before the report was received." Mr Cameron declined to say exactly when he made the decision to remove Prof Smith. He also gave no reason for the decision. Well-placed sources have told the Daily Telegraph that, despite the Prime Minister's words, Prof Smith was only told of his removal after he submitted his pay advice. It is understood that the AFPRB's report for 2013 was submitted to the Government on 31 Jan. Prof Smith was informed that he was losing his post on 15 February. Downing Street has so far declined to comment on that sequence of events. The revelation of the departure of Prof Smith, a Sussex University economist, dismayed military campaigners, who praised him for his work at the AFPRB. Catherine Spencer, the Chief Executive of the Army Families Federation said she was "staggered and saddened" by Prof Smith's departure. Prof Smith had listened to the worries of military families, she said. The AFBRB have listened to our concerns and reacted -- and he seems to have paid the price. In a message of condolence to Prof Smith, she said: "Thank you for listening to the views of Army families." Jim Murphy, Labour's Shadow Defence Secretary said the decision to remove Prof Smith was "punitive and incompetent." He said: "Professor Smith has been removed for doing the job he was asked to do. A government has the right to take the unusual step of not agreeing to the independent recommendations but to then refuse to renew the contract of the chairman smacks of intolerance. Mr Cameron declined to say if the Government will eventually implement Prof Smith's recommendation of a 0.5 per cent rise in "X-Factor" pay, which compensates Service personnel for the hardships of military life. However, he hinted that the rise will eventually be delivered, saying: "I think that our armed forces do an incredible job and they should be properly rewarded and I think we should always listen to independent bodies." Whitehall sources said that the pay rise could be announced as early as next week in George Osborne's Budget.