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BAE Systems loses £2 billion tank order

There was controversy this morning with news that UK based BAE Systems has lost out in the fight for a £2 billion government tank order to US rival General Dynamics. This comes despite the fact that BAE Systems was allowed to adjust its original proposal only last week to give greater emphasis on saving jobs and creating new jobs. However, it now appears that the decision to award the contract to a US rival was made before the BAE Systems proposal was adjusted which begs the question as to why the company was allowed to make changes.

There is now concern regarding a number of jobs in the UK with BAE Systems looking to go ahead with 500 redundancies in the short term, which the company hoped would have been avoided in the event of a victory in the tank order auction. However, it is the long-term future of BAE Systems which is causing more concern within political circles and the fact that the UK government is determined to sign off a £2 billion defence spending programme just prior to the election and just prior to an all-party review of defence spending.

One thing is for sure, as we approach the next election there are certainly many talking points!

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