The engineering school could bring �2.5bn to the economy

Charles Heyman believes the training school for all three armed services will instead be sited at RAF St Athan in South Wales due to job losses there.

The Ministry of Defence (MoD) is reviewing bids for the site which would give a local economy a �2.5bn boost.

An MoD spokeswoman said no decision had yet been taken.

Defence analyst Charles Heyman said: "Unfortunately I think St Athan will probably win this by about one or two per cent.

Base 'crucial'

"There have been a lot of job losses in the St Athan area in the last couple of years and especially at RAF St Athan itself."

RAF Cosford provides the life blood for nearby villagers like Albrighton.

The chairman of Albrighton Traders' Association Patrick Richards said: "From the economic standpoint it is crucial, because the personnel from the base spend money in and around the village."

An MoD spokeswoman added that three tenders involving the base were being considered.

A decision is expected by the end of the year.