MORE than 1,200 jobs in Hampshire are facing the axe after European Union bosses handed down a death sentence to Southampton's giant British American Tobacco factory.

In what was described as a "black day for Southampton", EU politicians yesterday sprang a surprise when they voted to ban the manufacture of all high tar cigarettes weeks ahead of schedule.

The controversial legislation will wipe out more than 90 per cent of production at the Millbook plant. The knock-on effect could lead to a further 7,000 job losses from 991 businesses across the South, which rely on the factory for crucial revenue.

The company has said it is "extremely disappointed", and will now look at plans to move their city-based factory abroad - leaving 1,200 workers on the dole.

Union bosses and one of the region's Euro MPs were last night furious at the decision, broken to them by the Daily Echo, and blamed the Government for failing to listen to their concerns from the outset. Bill Walsh, of workers' union MSF, said: "This is outrageous. But we will not roll over, and I will speak to BAT urgently about taking steps to increase our protests."

And Hampshire MEP Roy Perry, added: "The Government has never taken this threat to Southampton's jobs seriously.

"I have every sympathy with BAT staff - it is a very sad and black day for this city."

A spokesman for the BAT said it was too early to put a figure on job losses, but confirmed the company will look to move abroad.

"It is very complicated and we've yet to see the full text of the ruling, but it's a regrettable move and jobs will go. Employees are very angry."

BAT will not consider making lower tar cigarettes to avoid the ban, claiming that there simply isn't the market to sell them.

The ruling will be phased in, starting in September next year. BAT is likely to end production by 2005.

The new legislation bans the export of all cigarettes with more than 10mg tar, and prohibits the use of the words "mild" and "light" on packets.

Around 90 per cent of BAT's cigarettes are high tar exports to Asia and the Middle East. Most of the remainder are lights.

Health minister and Southampton Itchen MP John Denham, who has backed the EU decision, said the ruling was both realistic and sensible.

"The ban was originally due for 2003 but instead will not apply until 2005. Individual states (the Government) can delay this further, until 2007.

"This allows a much longer period of readjustment for the tobacco industry, and I believe the Government will listen sympathetically to views on how to implement it in the UK."

John Arnold, the Southampton City Council's executive member for economic development, said the decision would have a "very negative" impact on the city's economy - and demanded compensation from EU policy-makers.

"We would expect the EU to provide some kind of compensation or financial support for the region, in the same way it has for other regions that have suffered major setbacks."

Romsey MP Sandra Gidley added:"I am speechless. I just do not believe the Government has ever taken these people seriously.

"They have continually passed the buck, and never gave BAT the hearing they deserve."