Ministers have moved to open up the Westcountry's defence industry to increased foreign competition, despite tough times for the British industry.

The Government has announced its intention to buy military hardware "off the shelf" on the international market, as part of the continuing drive to save cash.

It means the defence industry, which is vital to the regional economy, is set to face increased competition from overseas companies providing ready-made alternatives.

The region builds helicopters, warships and military jeeps, but high-profile firms have been hit by the economic slowdown. AgustaWestland and BAE Systems have both announced job losses in Yeovil.

Military contracts provide some of the best paid jobs in the Westcountry. Babcock Marine's dockyards in Plymouth and Appledore, in North Devon, both benefit from big defence deals in Britain as does Westland, which is one of the region's largest private-sector employers.

Two years ago, East Devon-based Supacat lost a £100 million bid to supply the Army with a new vehicle to American-backed rival Force Protection Europe.

Unveiling the Government's plans, Defence Equipment Minister Peter Luff said: "Wherever possible we will seek to fulfil the UK's defence and security requirements through open competition in the domestic and global market, buying off-the-shelf where appropriate.

"This is the best way of ensuring that our armed forces and security services have access to the equipment they need at the time they need it and at a price the nation can afford."

The exception would be cases where buying British is essential to maintaining national security such as submarine-building.

But there are concerns the MoD would not consider wider employment or industrial impacts in deciding whether a piece of equipment offered value for money.

An MoD spokesman said the balance between bespoke equipment and off-the-shelf solutions would be made clear later this year when a ten-year equipment plan is published by the department.

Alison Seabeck, Labour MP for Plymouth Moor View and Shadow Defence Minister, has previously said British firms should get first refusal on Government defence contracts.

She said: "Industry needs certainty and delaying further their equipment plan can only undermine potential investment both into and within the UK."

The move has sparked union anger. Ian Waddell, national officer of Unite, said: "This Government should be using procurement to support British companies rather than using it against them.

"The defence industry provides highly skilled jobs and is hugely important to the economy."