Up to 16,000 British hi-tech manufacturing jobs were saved it was claimed today after Gordon Brown was ordered to sign up to the Eurofighter Typhoon.

With unemployment at a 12-year high and rising at its fastest rate since 1981, the Prime Minister said after signing the Royal Air Force up to a third batch of the aircraft which has been criticised both for its capability and its cost: “This will strengthen Britain's defence capability and will create new jobs in advanced manufacturing that Britain needs to emerge stronger and fitter from this global downturn.”

Brown has been under huge pressure from Business Secretary Lord Mandelson to back the estimated £1.4 billion programme not only to preserve Britain's standing with its Eurofighter partners — Germany, Italy and Spain — but also to create jobs.

The Ministry of Defence says making the Typhoon will secure 5000 jobs at BAE, 4000 at aero-engine maker Rolls-Royce and another 7000 in allied businesses.

It has been thought the Treasury has been trying to wriggle out of Britain's commitment to taking dozens of the jets which it is aiming to offset by exporting them to Saudi Arabia.

The final deal remains under negotiation said Defence Secretary John Hutton who insisted the number and cost of the aircraft are still to be determined.