MoD fears for 49,000 jobs

BRITAIN would lose up to £2.5bn and 49,000 jobs if arms exports were halved, the Ministry of Defence will claim today. But its report, The Economic Costs and Benefits of UK Defence Exports, admits that, within five years, 67,000 new jobs would be created, though at lower wages, while capital released from the arms trade would pour into other businesses.

Prospects for defence contractors have brightened since 11 September, but many argue Britain is over-dependent on the industry. It has sucked in resources that might otherwise have gone into manufacturing sectors with more exciting growth prospects.

The MoD concedes a defence downturn would release scientists and engineers, producing 'potentially positive results for innovation and investment'.