Hundreds of people have already lost jobs at the Barrow yard

Defence giant BAE Systems is to cut 760 jobs, mainly at the Cumbrian yard where 3,000 people are employed building submarines.

But unions say the move will have a devastating effect on the region.

Cumbria County Council says the cash will be used to mount a lobby campaign in an effort to save as many of the Barrow workforce as possible.

The campaign will focus on lobbying government ministers and senior civil servants at the highest level to secure the future of shipbuilding at Barrow.

'Future security'

A spokesman for Cumbria County Council said: "It will join forces with the North West Regional Assembly, MPs and the North West Development Agency so the North West speaks strongly with one voice."

Council leader Reg Toft added: "The loss of the jobs in Barrow is a bitter blow for the community.

"We are determined to do everything we can to ensure the future security of the remaining workforce.

"I have already met with senior colleagues from the county council, the leader of Barrow Borough Council and the Cumbria Inward Investment Agency to look at ways to further support the campaign."

BAE Systems said redundancies were needed to match its resources to its current and future requirements.

The Barrow yard is currently building three late-running and over-budget Astute submarines for the Royal Navy.