Manufacturers fear defence cuts

Manufacturing jobs are under threat, the industry says

National security and thousands of jobs could be put at risk by possible cuts to major defence equipment projects, the manufacturing industry has warned.

The Society of British Aerospace Companies, for some 2,600 firms, said workers faced losing jobs and troops could be left without vital equipment.

The Ministry of Defence's defence board met on Wednesday to discuss spending.

An MoD spokesman stressed the importance of prioritising resources and said no decisions had been made.

Last month, the Chief Of Defence Material, General Sir Kevin O'Donoghue, said all 19 major equipment projects could be affected by the spending review.

We are asking our armed forces to do more with less Ian Godden, chief executive of Society of British Aerospace Companies

The last time he could remember such tight spending constraints on the forces was in the 1970s, he told the Commons Defence Committee.

Ian Godden, chief executive of the Society of British Aerospace Companies, said: "We are very concerned that the government is about to make short-term decisions to balance their books with insufficient regard for the industrial consequences or impact on long-term value for money.

"The government's defence industrial strategy was set up to prevent this from occurring.

"It was right to reap the peace dividend at the end of the Cold War. However, there are many, varied, threats that still face the UK and our defence spending does not match our foreign policy commitments.

"We are asking our armed forces to do more with less," he said.

He added that the high value jobs, scientific benefits and revenue that the defence industry brought to the UK would all be eroded if defence was not given sufficient priority.

'Salami-slicing'

Both opposition parties have attacked government spending on the armed forces.

Shadow Defence Secretary Liam Fox accused the prime minister, Gordon Brown, of neglecting the armed forces.

Liberal Democrat defence spokesman Nick Harvey said a new strategic defence review was needed, rather than expensive "salami-slicing" programmes.

Meanwhile, Armed Forces Minister Bob Ainsworth is to meet coroners from Oxfordshire and Swindon and Wiltshire later to discuss how to speed up and improve the inquest process for troops killed in overseas operations.