Institute warns 2,400 jobs could go as result of BAE Systems announcement

Cuts at shipyards on the Clyde could result in wider job losses of around 2,400 across Scotland, economic experts have said.

The University of Strathclyde’s Fraser of Allander Institute said the knock-on effect of BAE Systems’ announcement could cost the Scottish economy £195 million a year.

However, the shipbuilding industry will continue to make a significant contribution to the Scottish economy.

It will support more than 7,000 jobs and generate nearly a quarter of a billion pounds, according to the institute’s impact assessment.

“While there is clearly relief the closure of the yards has been averted, it is useful to consider the scale of the job cuts on the Scottish economy as well as the remaining impact of the Glasgow naval yards on the Scottish economy,” it said.

“Govan and Scotstoun shipyards employ around 3,200 people in Glasgow and the cuts announced by BAE will reduce the workforce by around a quarter.”

Researchers used these figures along with Scottish Government statistics on the flows of goods and services in the economy to estimate the wider impact.