HALF a million manufacturing jobs could be created if the government and local authorities gave more contracts to UK firms rather than to foreign companies, the country's biggest trade union reports.

Unite said £42 billion worth of work should be awarded to home-based companies as this would lead to hundreds of thousands of high-value jobs being created.

The manufacturing union says this would have a significant impact on the UK automotive, textiles and train building industries which have all suffered serious decline in recent years.

The union listed government contracts which went abroad, including the manufacture of fire, ambulance and police vehicles and trains.

Jobs have also been lost in the textile and clothing industries as work has shifted overseas, said Unite.

Joint general secretary of Unite Derek Simpson said: "Our message to the government is clear. We have a first-rate manufacturing sector and first rate skills - imagine what it could do if it was supported by an intelligent procurement strategy that favours British business.

"The UK government is applying a very narrow definition of procurement which fails to take into account the economic benefits of awarding key government contracts to UK firms.

"Manufacturing has a value way beyond the physical making of things. It extends to research and development, design, supply, distribution and servicing, it is also more highly skilled and highly paid than jobs in other sectors such as service and business sector so its demise has massive effects on the wider economy."

Joint leader Tony Woodley said: "Manufacturing is our most valuable employer, exporter and revenue earner, so it makes sense that we should do everything we can to support and defend it.

"Every other European country boosts their manufacturing industry through the award of domestic contracts and we can and should do the same."