BAE Systems and the Ministry of Defence have signed a long-awaited multi-billion pound deal to build the first three of eight new frigates for the Royal Navy, securing thousands of British shipyard jobs.

The agreement to start work on the new Type 26 combat ships is one of the biggest UK defence deals in years and will guarantee work at BAE’s Scottish shipyards and across its supply chain for years.

Construction is expected to start on the 6,900-tonne ships next month, with steel beginning to be cut for the vessels at a ceremony in Scotland. So far the Government has committed a total of £4.7bn to the Type 26 programme – which is expected to last until 2035 – on design work, equipment with long order lead times and development of weapons for the ships.

About 1,700 shipbuilding jobs in Scotland will be secured by the contract along with 1,700 jobs among suppliers, with the first Type 26 being delivered in the mid-2020s.