A leading defence contractor pumped more than £300million into the economy last year, a new report has revealed.

BAE Systems Surface Ships in Glasgow supported more than 8,000 jobs in total - with 3,400 employed directly at its Clyde base.

The figures were welcomed by Labour who said such defence work would dry up in an independent Scotland under the SNP.

BAE managing director Alan Johnston said the report shows that the warship industry is thriving. He said: "The number of people in Scotland who benefit from the Clyde yards continues to increase year on year.

"Despite the current economic climate, we have seen significant growth in the past year and have the strongest future order book that this industry has seen in many years.

"Our long-term partnering agreement with the Ministry of Defence will help us to sustain key industry capabilities in the UK and we will continue to invest in our people and facilities to ensure that, as part of BAE Systems, we remain at the heart of the Scottish economy."

BAE Systems, formerly BVT Surface fleet, had a turnover of £698million from its Scottish operations for 2008/09 and £1.12billion across the UK, according to the report by Strathclyde University's Fraser of Allander Institute.

The yards at Govan and Scotstoun contributed £127million to the economy directly, with an additional £198million created in the wider economy through the knock-on effects of wage and supplier payments.

The business employed 3,404 people directly at Govan and Scotstoun, with a further 4,660 jobs supported in other industries.

Labour's Govan MP Ian Davidson said: "This is a clear testament to just how terrible it would be if the SNP had their way. Glasgow has a proud history of shipbuilding and as this report shows it continues to supply much-needed jobs both directly and indirectly in the local economy.

"Across the world Glasgow ships are a testament to craftsmanship of the Clyde yards, but if the SNP Government in Edinburgh got its way on independence the work would dry up."