Over 70 defence reps yesterday attended the launch of a report specially commissioned by Prospect, which spells out the challenges facing the Ministry of Defence and private defence companies over deep cuts to the defence budge.

The report also flags up the vital role of civilians in supporting the UK's armed forces. Deputy general secretary Mike Clancy said: "The crisis surrounding MOD now extends to the UK defence industry.

"The swingeing cuts to the defence budget announced as part of the government's Strategic Defence and Security Review are hitting private industry."

Thousands of highly skilled jobs have already been lost and MOD's industrial policy is in disarray, said Clancy. "Plans to cut 25,000 defence civilians from MOD are a recipe for disaster which will leave MOD desperately short of the in-house skills it needs to be an intelligent customer."

‘Challenges in the generation and support of front line forces' was written by Professor Trevor Taylor of the Royal United Services Institute and defence consultant Brigadier (Retired) Jim Campbell.

Their analysis informs the union's contribution to the Defence Equipment, Support and Technology Green Paper, announced in December 2010, and the work of the Defence Reform Unit, due to be completed by the summer of 2011.