In a Commons written statement, Defence Secretary Des Browne announced plans to merge the Defence Procurement Agency and the Defence Logistics Organisation and to relocate staff from sites around the country to the Bath and Bristol area.

Key sites affected include Andover, Telford and RAF Wyton and Brampton, near Huntingdon. The moves are due to take place over the next three years.

"Our members at these sites do not want to be forced to transfer to the south-west and many will leave the MOD rather than move their families," said Prospect National Secretary Steve Jary.

The merger of the DLO and the DPA will create a unified part of the defence ministry responsible for spending over 40% of the MOD’s budget. The merger – seen as a building block in the implementation of the government’s Defence Industrial Strategy (DIS) – is recommended in an internal report entitled Enabling Acquisition Change.

The DIS envisages a future of long-term contracts with the defence industry to secure so-called ‘through-life’ acquisition, where leading contractors such as BAE Systems will increasingly be responsible for the supply, maintenance and disposal of defence equipment. This will result in the privatisation of many support functions in MOD.

However, today’s report also emphasises the importance of having people with the right skills and notes that the MOD falls short of having the specialist skills required for effective acquisition.

"One consequence of forced collocation in the south-west is that skilled staff will leave the MOD, with a negative impact on the MOD’s support to the front-line. MOD specialists can already earn more in industry and their loyalty is being stretched to the limit by the government," said Jary.

"Prospect will be consulting members over the coming weeks about industrial action to stop the closures and transfers. Members are saying ‘enough is enough’. MOD’s plans are bound to disrupt support to the armed forces."