James Gray feared for Malmesbury

Mr Gray said: "Some 350 jobs have been lost in the town of Malmesbury before yesterday's devastating news of 800 redundancies as a result of James Dyson moving to the Far East.

"The prime minister will understand that it is appalling news for a town of only 4,500 people.

"Nationally, 350,000 manufacturing jobs have been lost since he came to power and manufacturing is now officially in recession.

"Will he (Mr Blair) accept personal responsibility for it, or will he pass the blame on to somebody else?"

Mr Blair said manufacturing had suffered more under the Conservative government, and 1.2m jobs had been created under Labour.

Malaysian switch

Mr Blair said: "Of course, we are deeply disappointed at Mr Dyson's decision, but it is a decision for his company."

Workers and civic leaders in Wiltshire had reacted angrily to the announcement that Dyson was switching production to Malaysia - with 1,000 jobs remaining in Malmesbury.

Two years ago the company was refused planning permission to expand the plant in Wiltshire.

Negotiations have begun with the workforce and a final decision on the switch has yet to be made, but Mr Dyson has told BBC News Online he could see no alternative.

Dyson has invested �32m in the Malmesbury site in the last two years.