Negotiator Tony Hammond said: “This announcement has revealed BAE’s contempt for its staff by trying to bury bad news on the eve of a national celebration. However the real truth cannot be hidden – that the defence industry is in crisis.”

BAE GCS plans to close its Newcastle manufacturing facility by the end of 2013 with the loss of 300 jobs. The company says there is no potential for future vehicle production at the site when the present order for the British Army Terrier vehicle is completed.

GCS also plans to cut 100 jobs across their three munitions production sites – Glascoed, Radway Green and Washington – over the next 12 months as it implements cost cutting measures.

Hammond said: "The cuts are yet another example of how Ministry of Defence budget cutbacks and the failure to set out a credible defence science and industry policy are crippling the principal UK defence contractors.

“Now isn't the time to throw highly skilled staff and jobs to the wall. The effects will be badly felt in both the local communities and the UK’s already battered defence infrastructure.”