The government yesterday confirmed that it has dropped plans to build two Type 45 destroyers on the Clyde.

BAE Systems' Scotstoun yard has launched HMS Daring and HMS Dauntless, the first two warships of the class, with two more of the £600m warships under construction. A further two will still be built.

But Armed Forces Minister Bob Ainsworth said the government would not be building the seventh and eighth warships. He said there was not "unlimited resources" for naval spending and said there was "sufficient capability" in the fleet.

The Herald revealed a warning by Whitehall sources in February last year that two Type 45 destroyers could be the first casualties of a new financial battle between the Ministry of Defence and the Treasury.

John Robertson, Labour vice-chairman of the House of Commons all-party shipbuilding group, said it was "disappointing" but last week's news of a contract for two aircraft carriers was "a vote of confidence in the workers on the Clyde".

John Dolan, GMB convener at Scotstoun, said it was "not unexpected".