Council chief Liam Smith warned that plans to close the Ford stamping plant could have a serious impact on the economy after weathering �80million of government cuts.

The Barking and Dagenham Council leader vowed to fight proposals to axe the 750-staff factory after the government shut the Remploy factory in Barking, which employed 60 disabled workers, this summer.

He said: “The decision to close the stamping plant in Dagenham next year will be a grievous blow not only to those who work at the plant itself and to their families, but to the wider supply chain of businesses and small and medium enterprises that rely on Ford.

“The closure of the Remploy factory in Dagenham, central government cuts to local authority grants which have seen �80m cut off the council’s budget in four years and now this.

“For a poor borough like Barking and Dagenham, this announcement is one cut too many and as council leader will be fighting this.”