Ministry of Defence contracts secure 7,500 naval base jobs

Babcock and BAE have won £3.2bn government deals to maintain fleets at Clyde, Devonport and Portsmouth

2,000 jobs secured at Portsmouth dockyard after government awards contract to maintain fleet there until 2019
2,000 jobs secured at Portsmouth dockyard following new government contract Credit: Photo: Alamy

The government has awarded £3.2bn of contracts to maintain the Royal Navy’s warships and submarines at the Clyde, Devonport and Portsmouth naval bases, in a move that secures 7,500 jobs.

Babcock, the UK engineer, has won a £2.6bn deal to continue managing the naval fleet at Clyde and Devonport until 2020, the second biggest contract placed by the current government since it took power, the Ministry of Defence said. BAE, Europe's largest defence firm, was handed a £600m deal to run the Portsmouth base until 2019.

The new government contracts will secure around up to 4,000 posts at Devonport, more than 2,000 at Portsmouth and a further 1,500 jobs at Faslane on the Clyde.

The contracts come amid huge uncertainty for Britain’s shipyards after BAE announced last year it was ending shipbuilding at Portsmouth with the loss of 900 jobs and cutting a further 800 across Scotland. The announcement was a big blow to Portsmouth, where ships have been built for more than 500 years.

Defence spending has fallen by around 8pc under the current government as it sought to tackle a record budget deficit.

"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," British Defence Secretary Michael Fallon said.

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."

Commodore Jeremy Rigby, commander of Portsmouth Naval Base, said: "The contract will keep the base running at the highest standards and will ensure our ships are in the best possible condition and operating at the highest capability.

"This announcement comes at an exciting time for Portsmouth Naval Base as we prepare for the arrival of the Royal Navy's two new aircraft carriers - HMS Queen Elizabeth and HMS Prince of Wales."

The largest contract the government has awarded was the Scout armoured vehicle contract, worth £3.5bn to General Dynamics, the American defence firm last year. The order will provide the Armoured Cavalry with 589 new generation light vehicles to be used for roles including surveillance.