Deals said to secure 1,500 jobs at Faslane on the Clyde, up to 4,000 at Devonport and more than 2,000 at Portsmouth

This article is more than 5 years old

This article is more than 5 years old

The Ministry of Defence has awarded contracts worth £3.2bn to support the management of the UK’s naval bases and maintain and repair the Royal Navy fleet.

The MoD said the contracts would directly sustain more than 7,500 jobs across the UK.

Babcock, which manages Her Majesty’s Naval Bases (HMNB) at Devonport and Clyde, has been awarded a £2.6bn contract, and BAE Systems, which manages HMNB Portsmouth has been awarded a £600m contract.

The defence secretary, Michael Fallon, said: “This huge investment in our naval bases will … ensure that the Royal Navy’s fleet of 56 warships and submarines are in the best possible condition and available for operations.

“Following the £3.5bn Scout armoured vehicle contract, this is the second biggest defence contract placed by this government and reflects our commitment to giving our armed forces what they need to keep Britain safe.

“As a former minister for Portsmouth, I know how important naval bases are for the local economies so I am delighted that these contracts have been awarded.”

The contract will secure about 1,500 jobs at Faslane on the Clyde, up to 4,000 at HMNB Devonport and more than 2,000 at Portsmouth.

Fallon said the contract would give long-term security to workers at Faslane.

He told BBC Radio Scotland: “There’s no new jobs, but I think it’s very important to reassure those who are working on the Clyde, now that the referendum is over, that they will have that job security.

“This is one of the longest contracts we’re placing and it’s a huge contract, so it’s confirmation that the Clyde will be one of our most important naval bases for years to come.”

The announcement comes less than two weeks after the Scottish independence referendum, in which Scotland voted by 55% to 45% to stay in the UK.

With the Scottish National party (SNP) campaigning to remove Trident submarines from Scotland in the event of a vote for independence, pro-union campaigners had warned that voting yes would put thousands of jobs at Faslane and the surrounding area at risk.

Fallon said: “A majority voted to stay in the United Kingdom and all parts of the United Kingdom benefit from the nuclear deterrent. Those submarines keep us all safe - Scotland, England, Wales and Northern Ireland.”

The shadow defence secretary, Vernon Coaker, said: “Labour fully supports the role played by the defence industry in creating jobs, promoting British exports and sustaining excellence in design and manufacturing. The defence industry makes a hugely significant contribution to our economy.”

But he added: “David Cameron’s botched procurement plans caused uncertainty for industry and defence workers across the country.

“Workers at Devonport, Faslane and Portsmouth will welcome the fact that existing and previously proposed contracts will continue there. But what we need are long-term decisions based on the country’s defence needs, not cynically timed announcements and made-up news for political ends.”

The first sea lord, Admiral Sir George Zambellas, said: “These significant contracts represent a strategic investment in the Royal Navy’s essential infrastructure. Without the stalwart and tireless support provided by each of the three naval bases ashore, the ships and submarines of the Royal Navy would not be able to deploy as a credible, strategic and global presence at sea.”