The council leader and local MP in Barrow will be campaigning for government assistance to cushion the blow of 700 job losses at the town's shipyard.

It had initially been feared that up to 1,500 jobs could be lost at BAE Systems, which employs 4,000 people in Barrow.

On Tuesday, BAE announced 700 job losses in Barrow-in-Furness, 265 on the Clyde, and 50 from its operation at Waterlooville, Hampshire.

The Labour MP for Barrow and Furness, John Hutton said it is now important to focus on ideas that will lead to the creation of other jobs.

We intend to develop Barrow as a world class submarine centre of excellence BAE spokesman

Mr Hutton said: "I know the Regional Development Agency will be making an announcement about how it can fast track some of its schemes that are in the pipeline.

"It will also be looking at how we can attract economic assistance from the government."

The jobs announcement comes as the Barrow yard waits to see whether it has won a government contract to build two new aircraft carriers.

'Campaigning hard'

But Barrow-in-Furness council leader Terry Waiting is worried more workers may now be laid off in the future and said: "We will be asking for assistance from central government.

"We have been campaigning over the BAE carrier contract, and we will be campaigning hard for proper assistance now this has been announced."

A statement from Cumbria County Council said: "The announcement is a major blow to the already fragile economy of the Furness peninsular.

"We support the setting up of the North West Development Agency (NWDA) led Taskforce and will do what we can to support its work."

The company says it will consult its employees and the trade unions about the plans.

It has also announced it will continue to develop Barrow as the centre of its submarine programmes.

Workers consulted

It says the job losses are necessary to maximise efficiency.

A BAE Systems spokesman said: "All of these (job losses) will be taking effect progressively over the next several months.

"In accordance with normal company practice, BAE Systems will be entering into consultations with employees and trade union representatives.

"Additionally, BAE Systems announces it intends for Barrow, supported by Farnborough, to continue to develop as a world class Submarine Centre of Excellence within the company, for current new and future submarine programmes. "

The company said it had worked hard to find appropriate additional work to bring into its yards.

A spokesman for the GMB union said they were seeking details about where the jobs would be lost.