THE efforts of warship builders in Hampshire contributed a shade under a quarter of a BILLION pounds to the UK economy, according to the new outright owner of the former VT Group business.

The claim from Farnborough-based BAE Systems is seen as the latest step in a campaign by the defence giant to fend off Government cuts in weapons programmes such as the £5 billion two new aircraft carriers.

It has compiled a report detailing the benefits to the UK of its shipbuilding business, which it now owns outright after buying the remainder of the firm from Botley-based VT Group last month.

It reveals that BAE Systems Surface Ships (BSS), formerly BVT Surface Fleet, added almost £600m to the UK economy last year, including £248m generated from its operations at the Portsmouth Naval base, which employs hundreds of Southampton workers.

The south Hampshire operations of the business support 6,300 jobs in total with more than 3,099 employed directly at its warship building and ship support sites, making it one of the biggest employers in the region. But as many jobs again are supported in other UK industries, meaning that for every 100 people employed directly at the shipyard, a further 104 jobs are supported in the wider economy In total, the warship business generated a total of £183m worth of wages, further underlining the scale of its contribution to the region’s prosperity.

Carried out by the University of Strathclyde, the study examined the direct and indirect economic impact of BSS’ operations in Portsmouth, Glasgow and Filton during 2008/09.

A BAE spokesman said: “We are trying to demonstrate the wider importance of the defence sector.”

Publication of the report comes amid widespread fears of heavy cuts in the UK defence budget as the Government seeks to drastically reduce its debt pile.

Although it is not thought likely the carriers will be axed altogether, there are fears one could be reduced to a more basic ship.

The two proposed carriers, the Queen Elizabeth, due to go into service in 2016, and the Prince of Wales, to follow in 2018, are already running £1 billion over budget. The original estimated cost was £3.9 billion.

Alan Johnston, managing director of BAE Systems Surface Ships, said: “The findings of the study demonstrate that our business and the warship industry continue to thrive. Our operations in Portsmouth have significant knock-on benefits not only to the local community, but also to the UK as a whole.

“Despite the current economic climate, we have seen significant growth in the past year and have the strongest future order book that this industry has seen in many years. Our long-term partnering agreement with the MoD will help us to sustain key industry capabilities in the UK and we will continue to invest in our people and facilities to ensure that, as part of BAE Systems, we remain at the heart of British industry.”