Berthon says the Severn work will keep the yard fully employed until Christmas, which will perhaps only delay the inevitable job losses unless more work is brought in.

Some of the losses will be covered by natural wastage and voluntary redundancies, although the apprenticeship scheme will be severely curtailed.

The lifeboat programme represented about half the yard's work and was worth £1m a year.

Managing director Dominic May said the repair and refit operation was unaffected by the loss of the RNLI work and a new 75-ton boat hoist was being installed.