The future of MoD Stafford remained in doubt today after the Government announced the UK’s Defence Support Group workforce will be reduced by up to 600 jobs by 2013.

It means the livelihoods of some 200 staff at the Beaconside base are at risk while ministers decide where the axe will fall.

There are no plans to close any sites across the UK at this stage.

The announcement follows the Strategic Defence and Security Review (SDSR) unveiled by Prime Minister David Cameron last week.

This outlined an eight per cent cut over four years in defence spending – including the loss of 25,000 civilian staff nationally as a result.

The Defence Support Group is one of the largest defence equipment support providers in the country.

The Beaconside base has already seen both the RAF and the Defence Storage and Distribution Agency depart in recent years.

It houses 818 military personnel, 450 civilian staff and is home to the Tactical Supply Wing and the 22 Signal Regiment which includes the Gurkhas. Formal talks between the DSG’s national workforce, trade unions and ministers will now get under way to consult on the proposals.

The consultation will last 30 days, after which there will be a further 90 days of discussions during which it will be decided where the job losses will be.

Peter Luff, Minister for Defence Equipment, Support and Technology, said if there were not enough voluntary redundancies compulsory redundancies could not be ruled out.

He paid tribute to the “outstanding service DSG personnel provide and the pivotal role they play in supporting the UK Armed Forces with the vital equipment they need on critical operations both at home and overseas”.

He explained a drop in demand was behind the cuts, and pledged help would be made available to staff wanting to retrain for a new career.

Announcing the move in a ministerial statement last night, he said: “Despite major cost savings and efficiencies delivered by DSG since its formation on April 1, 2008, the business is faced with declining order books.

“It must therefore begin a major structural reform to realign its capacity and capability with defence customers’ reducing demand.

“Based on current workload plans, this will result in a reduction in staff levels by up to 600 by April 2013 – around 17.5 per cent of the DSG workforce.

“However, it is not envisaged that these reductions will result in site closures.”

Unions vowed to fight the coalition over its spending plans.

John Wilson, the Public and Commercial Services union representative at MoD Stafford in Beaconside, said: “This announcement which affects 200 staff has come as a bolt out of the blue.

“The workers at Stafford have been through a period of uncertainty following withdrawal from the site of the RAF and the Defence Storage and Distribution Agency.

“It was only two years ago that they found a new home with DSG.

“Now their job security is under threat again.”